Superior Industries International
) 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
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.
SUPERIOR INDS (SUP): Free Stock Analysis Report
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