Zacks Analyst Blog Highlights: Aftermarket Technologies, Ford, Daimler, Honda and Cingular

Business Wire, Feb 14, 2008

CHICAGO -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Aftermarket Technology Corp. (Nasdaq: ATAC), Ford (NYSE: F), Daimler (NYSE: DAI), Honda (NYSE: HMC) and Cingular (NYSE: T).

See the latest posts to the Analyst Blog here:

http://www.zacks.com/blog/post_info.html?g=6

Here are highlights from Wednesday's Analyst Blog:

Pressure on Aftermarket Tech Gains

Aftermarket Technology Corp. (Nasdaq: ATAC) is the largest re-manufacturer of transmissions worldwide, with an 8% market share. Both the logistics and drive-train segments are well set for future growth, which makes us optimistic. However, soaring raw material prices and demand for concessions by a few customers such as Ford (NYSE: F), Daimler (NYSE: DAI), Honda (NYSE: HMC) and Cingular (NYSE: T) -- all four comprising 81% of sales -- are expected to keep margins under pressure.

On February 12, 2008, Aftermarket Technology Corp. reported results for the fourth quarter of 2007. In the quarter, earnings from continuing operations were $0.41 per diluted share compared to $0.42 per diluted share for the fourth quarter in 2006. Sales increased to $134.6 million, an increase of 5.5% from $127.6 million for the same period in 2006. For 2007, earnings from continuing operations increased to $1.81 per diluted share compared to $0.81 per diluted share in 2006.

In 2008, earnings from continuing operations are anticipated to range between $1.60 and $2.00 per share. The company also expects to generate revenues of $550 million to $625 million in 2008. Currently, shares of Aftermarket are trading at 12.3x our 2008 EPS estimate of $2.09. Hence, we recommend a Hold and set a six-month target price of $30, which is 14.4x our 2008 EPS estimate.

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