Oppenheimer Maintains Outperform, $6 PT on China Gerui
Oppenheimer reiterates its Outperform rating and $6 price target on China Gerui (NASDAQ: CHOP) as the company is seen to be positioned well for navigating continued challenges.
Oppenheimer says, "We believe CHOP's unique made-to-order production and cost-plus pricing will help it wade through challenges in a slowing economy and declining steel prices. With continued ramp-up of new production lines, we expect growth momentum to continue and margins to expand in 2012. We also expect CHOP to be more creative and aggressive in developing new products, penetrating new verticals, and expanding outside of China. A potential Big 4 auditor upgrade and increase in investor appetite for Chinese ADRs in general could also drive significant multiple expansion in 2012."
CHOP closed at $3.74 per share on Thursday.
