UPDATE: DA Davidson Upgrades Omega Protein to Buy; EPS Discounted on Pullback
DA Davidson raises its rating on Omega Protein (NYSE: OME) from Underperform to Buy and raises its price target from $6 to $10.
DA Davidson notes, "We are raising our rating on Omega Protein to BUY, previously Underperform, and increasing our price target to $10, previously $6, based on 1.0x book value and 5.2x EV/EBITDA. Our increase in EPS estimates for 2012 and 2013 and the reduced risk of a poor fishing season contribute to our view. We believe the recent pullback in the stock has nearly discounted the poor margins and EPS expected in 2012 and the shares now appear attractive."
OME closed at $6.45 on Thursday.
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