Research Alert: CFRA Lowers Opinion On Shares Of Carlisle Companies To Buy From Strong Buy
11:40 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 target price to $166 (from $158), 18x our 2022 EPS estimate (raised to $9.02 from $8.76; 2021 to $7.39 from $7.34) -- in line with CSL's 5-year forward P/E average. Q4 adjusted EPS of $1.48 vs. $1.78 beat consensus by $0.28. Revenue fell 7% Y/Y in Q4, with Interconnect (15% of sales, -35% Y/Y) leading the way down as commercial aerospace customers have scaled back production during the pandemic. Construction Materials (71%, +1% Y/Y) and Brake & Friction (7%, +5%) managed to grow despite Q4 U.S. industrial production dropping 5% Y/Y, however, showing the strength of CSL's technology and market position, in our view. We forecast revenue growth of 8% in 2021 as the industrial sector will fully recover from the pandemic, in our view, and expect EBIT margin of 12.5% vs. 11.4% in 2020. CSL shares have made nice gains since we implemented our 5-STAR rating in July, increasing 24% vs. 18% for the S&P 500. Our change to 4-STARS is due to a likelihood of more modest gains after the recent rally.