UPDATE: Wedbush Raises PT to $50 on ESCO Technologies on Revenue Visibility
Wedbush maintained ESCO Technologies Inc. (NYSE: ESE) with an Outperform rating and raised the price target from $38.00 to $50.00.
Wedbush commented, "We are reiterating our OUTPERFORM rating and are raising our target to $50 (from $38) reflecting an 18x multiple on FY14 EPS estimates. Our targets uses an 18x multiple on FY14 EPS estimates (vs. a 15x on FY13E EPS previously), which we see as fair given good visibility on revenue acceleration driven by SoCalGas. Considering ESCO's long-term 20x average P/EPS trading multiple, an improving outlook for large project awards should drive further multiple expansion."
ESCO Technologies closed at $42.02 on Tuesday.
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