Jeffries & Company Maintains Pall (PLL) Buy Rating
March 12, 2010 10:02 AM
Jeffries & Company analysts Jon Wood and Brandon Couillard maintained their Buy rating with a price target of $45 for Pall Corporation (NYSE: PLL).
After Pall Corporation released a disappointing earnings report, which sent its shares falling, the analysts reviewed their outlook for the company.
The analysts wrote that the fact that the Pall Corporation's gross margins were up was overshadowed by higher SG&A spending.
The Jeffries & Company analysts wrote: "Buy, particularly on weakness. Shares of PLL will likely relinquish recent gains (+16% in one-month vs. 7% for S&P 500) at the open on the weaker 2Q trends and recalibrated FY10 EPS outlook. However, our view that PLL's operating trajectory is near a substantial inflection point remains intact, and with the shares implying an EV of 9.3 times our revised CY10 EBITDA forecast (10% discount to history), we anticipate any material weakness will be short-lived."
