Jefferies Reiterates Buy Rating on Central European Distr. (CEDC)

Jefferies & Company is out with a research report this morning, where it reiterates its Buy rating on Central European Distribution Corp. CEDC; it has a $33.00 price target on the stock, down from $37.50. The analysts cited the company’s recent earnings report, which has forced them to update their estimates. They also noted that the given the severely poor climate conditions in Russia this summer including excessive heat, drought and wildfires, they are reducing estimates. As for valuation, the analysts remarked, “Our 12-month price target is $33, or 15x our 2011E of $2.20, still below historical averages pending a re-acceleration of trading conditions in Russia and Poland. 2003-2007 average prospective P/E was 18.5x, ranging from 10.9x to 27.4x, suggesting multiples could quickly expand as conditions improve and sentiment changes.”