Wedbush Raises Estimates On Sotheby's

According to Wedbush, Sotheby's Holdings BID estimates and price target are raised. Wedbush reported that it is raising its 2011 estimates for revenue to $848 million from $830 million, and for EPS to $2.97 from $2.82, to reflect better than expected momentum in recent auctions, especially for Asian art. “For example, last week's Chinese Ceramics and Works of Art sale generated $26 million in sales, or well above the pre-sale midpoint estimate of $11 million and 80% above last year's total. Reiterate OUTPERFORM rating; raising PT to $57 from $55. Given strong momentum in the global art market, and our belief that the art market is only in the early stages of a potential multi-year rally, we believe shares of BID should trade at their 5-year historical average forward P/E multiple of 19x. Given our upward estimate revision, this generates our new price target of $57.” Sotheby's Holdings closed yesterday at $48.87.