UPDATE: JP Morgan Maintains Dynamic Materials Overweight Rating, Stronger 2H13 Expected

In a report published Tuesday, JP Morgan maintained its Overweight rating on Dynamic Materials'

and $21 price target. JP Morgan reported that, “We are lowering 2013E EPS to $0.95 from $1.25 as slower than expected YE12 activity weakens the 1Q13 outlook even excluding $3mm of one time management retirement expenses; we also exclude a positive $900k tax adjustment related to 2012. The company should post a stronger 2H13 as Oilfield Products revenue catches up to investments made to expand distribution while potential large cladding wins present upside potential to our forecasts. We are introducing a 2014E EPS of $1.35 which reflects continued top line growth with improving global energy & industrial capex in addition to margin expansion from the completion of the shaped charge manufacturing facility in Texas.” Shares of Dynamic Materials closed at $17.16 on Monday.