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Recently, I read three different research reports. The reports were authored by the three analysts that cover ITII the closest.
Among the highlights:
Steve Jacobs (Dain Bosworth) : Reiterate Strong Buy , 1998 EPS Est. of $1.80/share, price target $36." We continue to believe that ITII has re-established itself as the premier manufacturer of wireless and hybrid home security systems and sensors. We are somewhat frustrated with the market's lack of response as the company's positive results have been masked by negative yr. over yr. comparisons."
Micheal Mach (Piper Jaffray): Retain Strong Buy., 1998 EPS Est. of $1.80/share, 12 mo. price target of $32 (based on multiple of 18x 1998 EPS)." We continue to rate ITII shares a Strong Buy. Momentum for ITIIs business continues to build , reflecting the strength of its franchise and ITIIs strong mgmt. team Our twelve mo. price target is $32, based on multiple of less then 18X 1998 EPS, which we believe is conservative"
Steve Deluca (Robertson Stephans) : Long term Atteractive Rating, 1998 EEPS Est. of $1.60/share. "Based on CY 98 valuation, ITIIs shares look undervalued (15.2x CY EPS vs. comps of 19X)....We are encouraged by ITIs desire (and ability to sign agreements and make acquisitions that broaden its product position and grow its non-ADT business"
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As I have said time and time again on this thread, this is a fabulous company. Great industry, great new products and a great management team.
With respect to EPS estimates, I think a $1.80 in '98 is conservative. Tom Auth's style in guiding the analysts seems to be typical of his personality and management style. Nothing overly-promotional or fancy. He concentrates on running his business and the rest (good earnings)takes care of itself.
So, despite the market's turbulance, this stock is a keeper. I would be surprised if it wasn't trading in the $35-40 range in the next 12 mo.
By the way, if anyone would like for me to fax the treports to them, e-mail me at chad@ultrak.com, |
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