J.P. Morgan Raises ESCO Technologies PT To $44, Maintains Neutral (ESE)

J.P. Morgan raised its ESCO Technologies ESE price target to $44 from $3 and maintained its Neutral rating in a research report published today. In the report, J.P. Morgan states, "ESE reported solid F1Q results well ahead of expectations with strength in each operating segment. FY11 guidance was reiterated, despite the beat, as some orders were pulled forward into F1Q. Book-to-bill was 1.2x; backlog increased and should accelerate further in mid-FY11 due to expected orders under the SoCal Gas contract. We are increasing our estimates to the top-end of the guidance range. FY12 GAAP EPS goes to $2.32 on $791mm in revenue (from $2.23/$772mm). Our Dec-11 price target goes to $44 (from $43). We maintain our Neutral rating, largely based on valuation, and look for pullbacks in the stock as opportunity to build a position in this improving story at a more reasonable price." ESCO Technologies were at $39 at the time of posting in after hours trading, up 5.52% from Thursday's market close.