Monday, October 25, 2010

Metalico (AMEX:MEA) Should Beat Quarterly Estimates

Canaccord Genuity said they're maintaining their "Buy/Best Idea" on scrap metal dealer Metalico (Amex:MEA) as their quarterly results report approaches.

"We reiterate our BUY/Best Idea rating on Metalico ahead of the company’s Q3 results on Friday, October 29 before the market open. We look for upside to our Q3 EPS estimate of $0.11 and anticipate management will have a bullish outlook regarding the PGM and nonferrous metals segments in Q4. Trading at less than 9x our 2011 EPS estimate, MEA has significant upside potential, in our view."

Metalico, Inc. also produces and markets a variety of lead products.

The company closed Friday at $4.73, up $0.27, or 6.05 percent. Trading volume was about double its normal 3-month average. Canaccord has a price target of $8 on them.

No comments: