Dutton Associates Announces Investment Opinion: LESCO Buy Rating Maintained By Dutton Associates
31 1월 2006 - 10:31AM
Business Wire
Dutton Associates continues its coverage of LESCO, Inc.
(Nasdaq:LSCO) maintaining its Buy rating and setting a 12 month
target price of $18.00. The 10-page report by Dutton senior analyst
Paul J. Resnik, CFA is available at www.jmdutton.com as well as
from First Call, Bloomberg, Zacks, Reuters, Knobias, and other
leading financial portals. LESCO is the largest supplier to the
U.S. professional lawn-care and golf-course markets. Over the past
four years, the Company has been engaged in an ongoing
restructuring as it has sought to increase profitability and put
itself on a growth path. After putting new management in place in
2001/2002, LESCO commenced to discontinue low-profit manufacturing
operations, restart the expansion of its Service Center(C) chain,
cut headquarters expense and reconfigure its distribution network.
On October 7, 2005, LESCO consummated the sale of substantially all
of its supply chain assets to Turf Care Supply Corp. (TCS). LESCO
management believes, and we concur, that it can now achieve greater
profitability and growth as it focuses on its retail operations. We
note that the sale not only removes low-margin businesses from its
mix but also frees up capital to more rapidly grow its profitable
Service Center network using internally generated funds. We
continue to assign the shares a valuation based on a 20
price/earnings multiple. Based on our 2006 EPS estimate of $0.90
(versus an estimated $0.44 in 2005), we have a 12 month price
target of $18.00 for these shares. We note, however, that the
shares are likely to find some support in the market from the
Company's share repurchase program. Moreover, as LESCO supplies
proof that its new business model can deliver the hoped-for growth,
investors are likely to expand their time horizon for valuation to
2007 and beyond, enabling the shares to move to higher levels.
About Dutton Associates Dutton Associates is one of the largest
independent investment research firms in the U.S. Its 28 senior
analysts are primarily CFAs and have expertise in many industries.
Dutton Associates provides continuing analyst coverage of over 120
enrolled companies, and its research, estimates, and ratings are
carried in all the major databases serving institutions and online
investors. The cost of enrollment in our one-year continuing
research program is US $35,000 prepaid for 4 Research Reports,
typically published quarterly, and requisite Research Notes. Dutton
Associates received $77,000 from the Company for 12 Research
Reports with coverage commencing on 3/12/03. The Firm does not
accept any equity compensation. Our principals and analysts are
prohibited from owning or trading in securities of covered
companies. The views expressed in this research report accurately
reflect the analyst's personal views about the subject securities
or issuer. Neither the analyst's compensation nor the compensation
received by us is in any way related to the specific ratings or
views contained in this research report or note. Please read full
disclosures and analyst background at www.jmdutton.com before
investing.
Lesco (NASDAQ:LSCO)
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부터 5월(5) 2024 으로 6월(6) 2024
Lesco (NASDAQ:LSCO)
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부터 6월(6) 2023 으로 6월(6) 2024
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