Superior Industries (SUP) - Bear of the Day

By Zacks Equity Research,

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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.
SUPERIOR INDS (SUP): Free Stock Analysis Report
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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Stocks
Referenced Stocks: SUP

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