UPDATE: Wedbush Reiterates Outperform Rating, Lowers PT on Polypore International

In a report published Wednesday, Wedbush Securities reiterated its Outperform rating on Polypore International PPO, but lowered its price target from $45.00 to $41.00. Wedbush noted, “Margins were weighed down primarily by the Lithium Separator business, where headwinds came from under absorption of fixed overhead, the transitory impact of elevated startup costs, and using available capacity for process qualification trials. Lithium Separator operating margins fell to 31%, down from 40% in 1Q12, and 47% in 2Q11. The ~$4.3m Q/Q erosion in segment profitability came primarily from the startup costs and process trials, where some costs will continue into 3Q12, and depreciation was a $1m Q/Q headwind.” Polypore International closed on Tuesday at $37.16.