From Standard & Poor's Equity Research
JP Morgan started covering Dynamic Materials (BOOM) at overweight, explaining that the company offers exposure to rapid sales, earnings per share and cash flow growth.
Analyst Michael Gambardella says the company is already established as a dominant global player (35% to 40% share) in a niche industry with extremely high barriers to entry. He says the company has a strong balance sheet (net debt/cap ratio of -17%), good cash flow, and high operating margins. He thinks this should lead the company to EPS CAGR of 23% from 2005 to 2008. He adds that the company's record $42 million order backlog at year-end 2005 reinforces growth prospects. He sees $1.24 2006 EPS, $1.65 in 2007 and $1.95 in 2008.