UPDATE: D.A. Davidson Reiterates Buy Rating, Raises PT on Rogers Corporation on Strong Q3 Upside

In a report published Thursday, D.A. Davidson analyst Avinash Kant reiterated a Buy rating on

, and raised the price target from $71.00 to $77.00. In the report, D.A. Davidson noted, “ROG reported Q3:CY14 operating EPS of $1.09 on record revenues of $163.1 million (up 6% from Q2:CY14 and up 14% from Q3:CY13); well above consensus expectations of $0.72 on $157 million and significantly above the top-end of the company's guidance ($0.65-$0.75 on revenues of $153-$159 million). Recognizing benefits from cost cutting initiatives taken over the past two years, along with higher volumes and continued operational efficiencies, non-GAAP gross margins in Q3:CY14 reached a new all-time high of 39.6%, up 240bp from Q2:CY14 and 370bp from Q3:CY13. Similarly, strength continued in the model with ROG reporting record operating margins of 17.4% in Q3, up 680bp sequentially and 300bp YoY.” Rogers Corporation closed on Wednesday at $66.88.