Raven Industries (RAVN) reported an EPS of $0.86 in the first quarter of fiscal 2012 versus $0.72 in the year-earlier quarter, outperforming the Zacks Estimate of $0.74. The improvement was largely driven by the double-digit growth in sales in the Applied Technology and Aerostar segment.
The company expects a record year in terms of sales and earnings, mainly driven by higher farm income. Given the company’s investments and cost-effective products, more and more customers would turn to Raven. In the long-term Raven expects net income growth in the range of 12%-15%.
Thus, we reiterate our Outperform recommendation on the stock with a target price of $68.00. Our target price is 27.0x 2012 EPS, and reflects this recommendation.
RAVEN INDS INC (RAVN): Free Stock Analysis Report
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