Benchmark Reiterates Buy, $40 PT on Ceradyne

The Benchmark Company maintains its Buy rating and $40 price target on Ceradyne, Inc.

and adjusts earnings forecast as Helmet award is seen as a near-term catalyst which could potentially offset Solar. According to Benchmark, “The military started First Article Test (FAT) on Ceradyne's Enhanced Combat Helmet (

) last week. If all goes well, a contract award is expected in late December or early next year. … Management believes solar could be weaker in Q4, and visibility for next year remains limited. The near-term outlook for the solar industry is challenging, with excess supply relative to demand driving significant margin and price reductions. … We lower our FY11 sales and GAAP EPS to $577 million and $3.10 from $588 million and $3.16 to reflect weakness in solar in Q4.” CRDN closed at $29.83 per share on Thursday.