TRMB Announces Agreement With IRS

Analysts at JP Morgan reiterate their "neutral" rating on Trimble Navigation TRMB, while raising their estimates for the company. The target price for TRMB has been raised from $31 to $33.5. TRMB has announced an agreement with the IRS which is “associated with the income tax returns of an IP royalty payment arrangement with a foreign-based subsidiary for the years 2005-07.” According to the agreement, TRMB will be accelerating payments under the existing royalty arrangement. “We expect TRMB to perform in line with the mean of our coverage,” the analysts mention. JP Morgan has raised its EPS estimates for FY2010 and FY2011 from $1.31 to $1.42 and from $1.56 to $1.67, respectively, to reflect a lower tax rate. More Analyst Ratings here