(SUP) Superior Industries International – Bear of the Day

Superior Industries International (SUP) faces significant customer concentration risks, as the Detroit Big Three represent about 75% of its sales. Further, unfavorable product mix and a weak Mexican peso continue to mar the company’s results.

In the most recent quarter, the company has disappointed by posting a significant 56.5% fall in profits to $6.4 million and missed the Zacks Consensus Estimate by $0.06 per share. Further, its revenues of $215.1 million were also lower than the Zacks Consensus Estimate of $222.0 million.

As such, we have downgraded our recommendation on the company’s shares from Outperform to Underperform and set a target price of $17.00. Our long-term recommendation on the stock indicates that it would perform below the overall market, and our target price — 18.5x our 2012 EPS estimate — reflects this view.

Zacks Investment Research

About vitalstocks

This is a sample profile field. Vitalstocks is the operating company for Stockbloghub. This will place the picture of the author or company in the profile. Here is another extra line of information.

Comments

Powered by Facebook Comments


Similar Posts: | | Auto Parts | Consumer Goods

RSS feeds: SUP | Superior Industries International Inc | Auto Parts | Consumer Goods |

Other Posts by | RSS Feed for this author