UPDATE: Brean Murray Carret Initiates Buy, $6 on China Gerui Advanced Material

Brean Murray Carret initiates coverage on China Gerui Advanced Material CHOP with a Buy rating and a $6 target price as it sees the company as a high p[recision player in a niche market. Brean Murray Carret says, "China Gerui is a leading player of converting hot‐rolled steel into high‐precision, ultra‐thin, high‐strength and high‐margin, customized, cold‐rolled steel products. We think the company is well positioned to outperform its peers given its market‐leader status, expanding capacity, nationwide customer base, and the potential for increased operating leverage. We expect CHOP's FY12 revenue and EPS to grow 26% YoY, to reach $434M and $1.46, respectively." CHOP closed at $3.78 per share on Tuesday.