LH Friend, Weinress, Frankson & Presson, Inc. is keeping its buy rating on Applied Films (AFCO ).
Analyst Ian Gilson says the company reduced its third quarter guidance, tying it to downward pricing pressure in coated the glass business and delays in customers' capital spending. Gilson says the news is "not surprising," adding that people have been saying liquid crystal display prices are going up, but they're not -- in fact they're falling. He notes, with a lot of capacity coming on stream, Applied Films and its peers are trying to find customers for their glass. He still finds Applied Films attractive and may upgrade if the stock weakens further. Gilson sees $0.65-$0.70 earnings per share for fiscal 2002 (June) before amortization of goodwill. He has a $35-$40 target.