According to J.P Morgan, TRW Automotive TRW seems to be entering a critical transition phase from which it thinks patient investors will be handsomely rewarded even if 2011 earnings momentum is deliberately moderated to fund tangible growth-related investment costs. A supplier long respected by value
investors for aggressive cost containment and prudent balance sheet management is seeming more and more like a hidden growth story.
J.P Morgan's revised estimates are conservative on revenue outperformance relative to industry production but also on margins. JPM revises its PT from $56 to $74, applying an 11x P/E multiple to its 2012e EPS of $6.75. Yet JPM sees a reasonable upside case to $8-9 of EPS or a ~$100 potential share price within 2-3 years assuming a low-teens P/E.
TRW closed Thursday at $58.82
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in