Piper Jaffray Reiterates Overweight On Trimble Navigation Following Analyst Day

Piper Jaffray is reiterating its Overweight rating on Trimble Navigation TRMB shares following the company's analyst day in Las Vegas and are incrementally more confident in the sustainability of double digit top-line growth over the next 3-5 years. Management highlighted new product offerings and sales initiatives aimed at several new end market verticals, including mining, railways, and utilities. Each of these new verticals are considered to be $100+ million sales opportunities. Additionally, Trimble's customer show emphasized end-to-end solution offerings, which should allow TRMB to capture greater revenue per construction project. Incrementally more confident in double digit top-line growth outlook following analyst day. The Overweight rating on TRMB shares is based on valuations and will continue to expand as the company delivers on its stated target of ~20% top-line growth in 2011. Piper remains confident in its FY11 EPS estimate and believes its estimate could prove conservative by 10-15 cents. Risks include global construction activity, weather in major agricultural regions, and slower than expected subscriber growth in its Mobile Solutions business. Piper Jaffray has a PT of $44on TRMB TRMB closed Tuesday at $36.88