CSFB Upgrades Harman International
Harman International (HAR ) posts $1.01 fourth-quarter earnings per share and sees 64 cents in the first quarter and $3.80 in fiscal year 2006. CSFB upgraded the stock to outperform.
Analyst Christopher Ceraso says fourth-quarter EPS was 6 cents above the consensus forecast. The company mapped out more specific revenue and EPS growth estimates for its 3 divisions (Automotive, Consumer, Professional), including a jump in automotive revenue and EPS in fiscal year 2008, on the back of the company's new business with DaimlerChrysler (DCX ) and Audi.
Harman also addressed his concern about the potential slowdown in overall profit growth that could stem from margin erosion in Automotive. Ceraso says while a mix shift is occurring, margins in Automotive are expected to hold fairly steady over the next several years.
The analyst increased his $100 price target to $105, and sees $3.95 fiscal year 2006 (June) EPS.