Superior Industries (SUP) - Bear of the Day

By
A A A

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
 
To read this article on Zacks.com click here.
 
Zacks Investment Research



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



This article appears in: Investing , Stocks

Referenced Stocks: SUP

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

WSJ’s House of the Week
WSJ’s House of the Week             

Stocks

Referenced

Most Active by Volume

58,707,995
  • $25.98 ▼ 1.81%
55,057,148
  • $15.52 ▲ 0.19%
48,580,535
  • $69.40 ▲ 1.43%
48,253,528
  • $28.33 ▲ 5.00%
37,923,248
  • $93.939 ▼ 0.52%
37,174,627
  • $44.835 ▲ 0.32%
32,656,684
  • $3.78 ▼ 1.31%
31,770,654
  • $34.06 ▲ 1.07%
As of 7/21/2014, 04:08 PM