J.P. Morgan Lowers Estimates on Beacon Roofing Supply (BECN)

J.P. Morgan has lowered its 2011E on Beacon Roofing Supply BECN following BECN's decision to refrain from commenting on Street numbers until models are updated. In its report sent to clients, J.P. Morgan writes, "the company noted that if the economy improves, it is in a position to return to its long-term EPS growth rate of 10%-20%, even with flat to low-single-digit sales growth. As a result, given that the Street consensus of $0.99 represents 32% growth, based on these comments and the company's more cautious views on demand, we lower our 2011E to $0.92 from $1.10, which we note still represents 22% growth, as we estimate 6% sales growth and 30 bps of operating margin expansion." BECN closed Monday at $17.12.