Oppenheimer Reiterates Outperform Rating, $12 PT on GSE Holding on Adjusted 4Q12 EPS

In a report published Friday, Oppenheimer analyst Jim Giannakouros reiterated an Outperform rating and $12.00 price target on GSE Holding

. In the report, Giannakouros noted, “GSE's adjusted 4Q12 EPS of $0.16 exceeded our/consensus $0.10/0.13 estimates, aided by lower taxes. Adjusted EBITDA of $10M approximated our estimate as higher SG&A offset higher sales (+10% y/y to $121M vs. our +5% estimate). GSE remains disciplined, opting out of lower margin landfill projects (related sales declined 10% y/y) where pricing pressures are expected to persist. Importantly, management guided to HSD sales growth in '13, including ~4 pts from SynTec. Despite expectations for 1Q's return to historically weaker seasonal patterns, we maintain growth expectations in '13 and an acceleration in '14. We maintain our $12 PT, based on a target 6.4x our ‘14E EBITDA of $62M, more reflective of GSE's growth potential, in our view.” GSE Holding closed on Thursday at $8.00.