First Albany keeps a buy rating on alcohol importation and distribution company Central European Distribution (CEDC).
Analyst Randall Scherago says the company has agreed to terms and conditions of the employment package with unions of Polmos Bialystok distillery. He views this as a positive sign that the company is moving in the right direction to buy 61% of Polmos Bialystok.
He says the unions had demanded better conditions than those guaranteed by original winner, Sobieski, which included guarantee of employment for six years. He notes the final pact is expected to be signed by July 15.
Scherago maintains his $1.66 2005 earnings per share and $1.96 2006 estimates for Central European Distribution, which do not yet include Polmos Bialystok. He has a $42 target.