RCRC Announces Inline Q4 Results, Conservative Guidance
Analysts at KeyBanc Capital Markets maintain their "buy" rating on RC2 Corporation (NASDAQ: RCRC), while reducing their estimates for the company. The target price for RCRC is set to $18.
According to KeyBanc Capital Markets, RC2 has reported its Q4 results inline with expectations. RCRC’s 2010 guidance, however, is marginally short of consensus, the analysts say. “We believe RCRC has an extremely underlevered balance sheet, finishing the year with $92 million in cash and only $41 million in debt,” the analysts add.
“Our long-term positive thesis on RCRC remains intact as we believe traction on Chuggington is evident and the opportunity to consummate an accretive acquisition remains a positive catalyst in 2010,” KeyBanc Capital Markets says. KeyBanc Capital Markets has reduced its EPS estimate for FY10 from $1.50 to $1.45.
