UPDATE: D.A. Davidson & Co. Reiterates Neutral Rating, Lowers PT on Polypore International as Results are Helped by License Benefit

In a report published Tuesday, D.A. Davidson & Co. analyst Avinash Kant reiterated a Neutral rating on

, but lowered the price target from $38.00 to $33.00. In the report, D.A. Davidson & Co. noted, “PPO reported Q4:CY13 EPS from continuing operations of $0.31 on revenues of $169.4 million (up 11% from Q3:CY13 but down 6% from Q4:CY12) versus consensus and our estimates of $0.31 on $164 million and $0.29 on $165 million, respectively. Revenues were helped by a $3.5 million licensing payment from Sumitomo Chemical (after the settlement of a patent lawsuit). Assuming legal expenses of ~$1 million and a ~32% nominal tax rate, we estimate this resulted in a ~$0.04 upside to Q4 earnings. A higher tax rate in Q4:CY13 vs. Q4:CY12 had a negative impact on a year-over-year basis. Cash on the balance sheet jumped to $163 million, helped primarily by the sale of the Microporous business (for $120 million). With ongoing litigation, Polypore recorded no revenues from LG in Q4.” Polypore International closed on Monday at $29.63.