Benefits of Cost-Cutting for TEN

Tags: ten
6 Oct 3:36am
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A Buy recommendation has recently been issued to auto parts supplier Tenneco, Inc. (TEN) by Zacks senior auto industry analyst Paul Raman, CFA.  Here's what he said in his latest update:

'Tenneco is witnessing revenue improvements and has been successful in cost reduction efforts and restructuring activities. The company holds a leading position in nearly every product category it offers. Moreover, diversification has proved to be a major positive for the company.


'On September 20, 2007, Tenneco announced its intention to close its Wissembourg, France manufacturing facility, which produces emission control products for original equipment manufacturers. The company will consult the work councils and local government authorities on the intended closure as around 180 people employed at the facility will directly have an impact of the announcement.

Currently, shares of TEN are trading at 19.7x our 2007 EPS estimate of $1.53. We set a six-month target price of $40.00 and rate the shares a Buy. This is 26.1x our 2007 estimate.'

Read the full analyst report on TEN.



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