Hudson Securities Maintains Neutral Rating On SPAR, $7 PT

Hudson Securities has issued a report reiterating a Neutral Rating and $7 Price Target on Spartan Motors SPAR following the 1Q11 results. The report states, "First, margins for Delivery and Service “are not where they need to be” according to management implying issues unrelated to volume being the culprit. Secondly, production of the Reach will be delayed pending customer durability testing. The longer term outlook for Delivery and Service is bright but given these concerns, plus shakiness in the company's remaining end markets, we prefer the sidelines and reiterate our NEUTRAL rating." SPAR closed yesterday at $6.79 a share.