UPDATE: Pritchard Raising Price Target On CARBO Ceramics

Pritchard Capital is out with a research report on CARBO Ceramics Inc. CRR and is raising its price target to $180 from $158, but it has a Neutral rating on shares. In a note to clients, Pritchard Capital writes, "Taking a stab at the impact and moving our 2012 eps estimate up significantly, to $7.56 from $6.58. The financial metrics (ASP, margins, etc.) of the ceramics business and the resin coated sand business appear to differ significantly, though return on capital may actually be similar. Our revised estimate for Q3 2011 is $1.45 (vs. $1.49 formerly) and full-year 2011 now stands at $5.75 (versus $5.80). The Toomsboro 4 line appears ahead of schedule, and is likely to commence operations early in Q4 2011. CRR announced the early stages of another ceramic expansion, at an undisclosed location though contemplating 500mm lbs of production annually and opening in 2013. As for our target, applying the same 24x forward P/E multiple to our revised $7.56 estimate yields a target price of $180. With the implied appreciation potential to the target, recommendation remains ‘Neutral'." Shares of CRR closed at $161.22 yesterday.