TEN’s Operating Margins To Improve Further
Analyst Brett D Hoselton of KeyBanc Capital Markets maintains his "buy" rating on Tenneco Automotive Inc (NYSE: TEN). The target price for TEN has been raised from $19 to $27.
Tenneco Automotive has reported its Q4 earnings inline with the consensus and the estimates. “TEN reduced its net debt by $278 million to $1.1 billion from the $1.3 billion in the previous quarter,” the analyst says. “We believe that investor attention likely shifts from balance sheet issues and short-term earnings to long-term revenue growth potential,” the analyst adds.
“For the years 2010-2014, TEN expects its five-year annual compounded growth rate to be 18-20%, which is above the previous guidance from 2008-2012 of 11-13% as well as toward the high end of our expectations of 15-20%,” according to KeyBanc Capital Markets.
