JP Morgan Keeps 'Buy' on FLIR Systems

Analyst Joseph Arsenio says a research report caused unwarranted weakness for the maker of night vision equipment

JP Morgan reiterates its buy rating on FLIR Systems (FLIR ).

Analyst Joseph Arsenio says the Center For Financial Research & Analysis (CFRA) recently published a report raising several balance sheet issues related to the company's 2001 Form 10-K. He believes several incomplete assessments noted by CFRA caused an unwarranted sell-off in FLIR's stock. He does not believe the CFRA's arguments had enough substance to warrant this price weakness.

Arsenio says he expects improving fundamentals to determine valuation; he says weakness offers a compelling buying opportunity. Arsenio also noted that his 2002 estimates of $2.12 earnings per share, and $252.7 million in revenue are consistent with recently reaffirmed guidance. He maintains his $53 target.

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