UPDATE: DA Davidson Reduces Target to $39 on RTI International Metals
DA Davidson reiterates its Buy rating on RTI International Metals (NYSE: RTI) and lowers its target to $39 from $42 a share as the company misses EPS estimates despite in-line revenues.
DA Davidson says, "RTI reported Q4 GAAP results at breakeven EPS on revenues of $141.9 million (down ~1% from Q3:CY11 but up ~24% from Q4:CY10) versus consensus estimates of $0.10 on $138 million and our $0.09 on $144 million estimate. We believe two factors contributed to the significant EPS miss. During the quarter, RTI recorded a $1.6 million expense related to the Remmele acquisition transaction, and the tax rate was much higher (98.5% vs. our 36% estimate). Together, we believe these two factors accounted for $0.06 of the earnings miss."
RTI closed at $24.13 a share on Tuesday.
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