Wells Fargo Expects Improvement In 2014 From Jarden
On Friday, April 4, Well Fargo announced an Outperform rating on Jarden (NYSE: JAH) with a price target of $67 to $69 per share.
Wells Fargo cited this as a reason for its price target, “Management's track record of delivering both organic and inorganic growth, combined with the market's appetite for what has become scarce earnings and cash flow growth stories, drive our rating.”
Furthermore, Wells Fargo continued to talk about four key investment points that its thesis is based upon:
• “Management has a core competency in driving organic growth, but also in allocating capital in shareholder-friendly ways, and is highly incentivized to continue to do so”
• “A fresh focus on cost savings – particularly SG&A, post the Yankee deal, should provide EPS flexibility;”
• “JAH is bringing big-company capabilities to categories that are generally under-managed by often smaller, competitors with fewer human and financial resources;”
• “JAH's 85-100% FCF conversion, and appetite to deploy that cash, presents opportunity. With valuation having expanded over the past 6 months, we think the current 17% discount to HPC more adequately reflects JAH's growth prospects and somewhat riskier investment profile”
Wells Fargo expects Jarden's results to improve through 2014, and although it is seeing Jarden report an earning per hare decline through the end of the first quarter, it also sees the company reporting top line acceleration in the second quarter and beyond.
Shares of Jarden are currently trading at $58.46 per share. Shares are down from a 52-week high of $64.01.
Latest Ratings for JAH
|Feb 2015||JP Morgan||Maintains||Overweight|
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