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Bank of America Reiterates Buy Rating, $25 PT on Standard Motor Products on Solid 4Q12 Results

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In a report published Monday, Bank of America reiterated its Buy rating and $25.00 price target on Standard Motor Products (NYSE: SMP).

Bank of America noted, “SMP reported 4Q12 continuing ops. EPS of $0.28, ahead of our $0.25 estimate and consensus of $0.22. GAAP EPS of $0.27 included a $658K pre-tax restructuring charge and a $240K gain from the sale of land, which netted to a $0.01/sh hit to EPS. The operating beat in the quarter versus our forecasts was driven by solid cost execution, as sales growth of 10.4% YoY, to $192mm (BofAMLe $199mm), was strong, but below our forecasts. Specifically, gross margin of 30.1% (BofAMLe 28.6%) exceeded our forecast and, coupled with inline SG&A as a % of sales of 23.5%, drove an adjusted operating margin of 6.7% (BofAMLe 5.1%), which was impressive. We expect SMP to continue delivering solid results, as the combination of an aging US vehicle fleet and a recovery in miles driven support demand for replacement engine and temperature-related components.”

Standard Motor Products closed on Friday at $25.02.

Latest Ratings for SMP

DateFirmActionFromTo
Aug 2016MaintainsBuy
Apr 2016Initiates Coverage onBuy
Feb 2016MaintainsBuy

View More Analyst Ratings for SMP
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Reiteration Analyst Ratings

 

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StockFirmActionPT
MANMaintains96.0
INTCMaintains57.0
CHNGInitiates Coverage On19.0
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SLBMaintains41.0
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