AG Edwards upgraded Sypris Solutions (SYPR) to buy from hold.
On Thursday Dana Corp. announced plans to sell some axle production assets to Sypris as part of an eight-year outsourcing deal. Analyst Tony Boase says he's upgrading technology-based outsourcer Sypris on this deal, which when completed in 2005, would increase the size of Sypris by almost 50%.
He views the Dana deal as a potential catalyst to attract meaningful investor interest and excitement in Sypris. Boase sees the company's 2004 earnings per share base at $1.00 without Dana; he says the deal adds about 33 cents earnings per share in total when completed in 2005.
Boase set a a $20 target, or 15 times his estimated earnings per share power of $1.33 based on current expectations and the Dana deal.