UPDATE: Goldman Sachs Reiterates Neutral Rating, Lowers PT on Polypore International Following Weaker 3Q13 Report

In a report published Tuesday, Goldman Sachs analyst Brian Lee reiterated a Neutral rating on Polypore International PPO, but lowered the price target from $39.00 to $37.00. In the report, Goldman Sachs noted, “Polypore reported 3Q13 below expectations on weaker-than-expected electric drive vehicle (EDV) and consumer li-ion battery (LiB) separator revenue, while margins contracted across divisions. 3Q13 revenue/EPS (adjusted) of $152mn/$0.18 came in below our $163mn/$0.27 view, with segment margin of 13% well below our 18% estimate, as LiB income declined by 80% qoq and separations media suffered from a longer, albeit temporary, maintenance shutdown. We cut our 2013E EPS by 14% on lower revenue/leverage in LiB, offset by higher estimates for filtration & specialty. Additionally, we lower our 2014E/15E EPS by roughly 10% and accordingly lower our 12-month price target to $37 (from $39 prior).” Polypore International closed on Monday at $43.90.