UPDATE: Topeka Capital Markets Reiterates Hold Rating, Lowers PT on Polypore International Following Estimate Adjustments

In a report published Tuesday, Topeka Capital Markets analyst Chris Kapsch reiterated a Hold rating on Polypore International (NYSE: PPO), but lowered the price target from $44.00 to $42.00.In the report, Topeka Capital Markets noted, “We are making housekeeping estimate adjustments, to reflect restated 2012 actual results, and 2013E-2014E adjusted projections with Microporous (MP) as a discontinued operation. As expected, the impending MP divestiture will be dilutive. PPO appears intent on using all MP proceeds for stock buybacks, and then some; the Company aggressively repurchased 2mm shares during 2Q13 for $80mm (the MP sale may fetch $100mm in net proceeds, give or take), and has another 2mm shares outstanding on its existing authorization. However, our (and presumably the Street's) 2013-2014 estimates were already factoring in some aggressive share repurchase activity, bolstering EPS. Our 2013-2014 pro forma adjusted estimates are reduced to $1.35 and $1.95, respectively, from $1.60 and $2.15. Our revised price target of $42 (down from $44) is based on a targeted multiple of 11x our revised 2014E EBITDA projection of $222.4mm.”Polypore International closed on Monday at $43.92.