JP Morgan Maintains Neutral on Meritor Following Analyst Day
JP Morgan has published a research report on Meritor (NYSE: MTOR) commenting on the company's Analyst Day yesterday.
In the report, JP Morgan writes, "We felt commentary at MTOR's analyst day yesterday did not shed light on anything materially incremental as the company reiterated its F2012 sales (~$4.8B) and EBITDA margin (8.2-8.6%) forecasts provided after its F4Q results (although MTOR did introduce EPS guidance of $1.08-1.39, slightly above ests.). Similarly, MTOR maintained all of its previous industry production assumptions. While the stock did drop ~8%, perhaps on liquidity and cash-related concerns, we feel the sell off may have been over blown. We think it's unlikely that MTOR will be tripped up in the same capacity constraint experienced in F2011 and the company feels that liquidity is adequate."
JP Morgan maintains its Neutral rating on Meritor, which is currently trading up $0.26 from yesterday's $5.51 closing price.
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