Research Alert: CFRA Reiterates Buy Opinion On Shares Of Ametek, Inc.
12:25 AM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our 12-month target price by $2 to $132, valuing the shares at 30.8x our 2021 EPS estimate of $4.29 (up by $0.04), at the upper end of AME's three-year forward range and above peers' forward average of 23.9x, reflecting our expectation that backlog and order momentum will support recovery in 2021. We start our 2022 EPS estimate at $4.56. AME posts Q4 EPS of $1.08 vs. $1.08, beating our $1.03 estimate. Sales declined 8% in Q4, including the divestiture of Reading Alloys in the Electromechanical Group. In 2021, we expect commercial aerospace to continue to be the weakest market with minimal recovery through most of the year. We expect capex to rise to $110 million in 2021 from $74 million in 2020. We foresee rising demand for AME's automation business to accelerate in 2021, supporting top-line growth of 7%-9%. We forecast EBITDA margin to expand 30 bps to 29.5% in 2021.