Solid 4Q For ESCO Technologies

JP Morgan has published a research report on ESCO Technologies Inc. ESE after the company reported solid 4Q results and FY2011 guidance. In the report, JP Morgan writes "ESE reported solid F4Q results and issued FY11 guidance ahead of expectations. Aclara sales at coop and international customers are driving near-term results. Backlog declined sequentially but we believe should begin to reaccelerate in mid-FY11 due to expected orders under the SoCal Gas contract. We are increasing our estimates – FY12 GAAP EPS goes to $2.23 on $772mm in revenue (from $2.04/$653mm). Our price target goes to $43 (from $37). We maintain our Neutral rating and look for pullbacks in the stock or additional AMI contract wins before becoming more constructive." JP Morgan maintains its Neutral rating and has raised the price target from $37 to $34. ESCO Technologies closed yesterday at $36.46.