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Zacks senior auto industry analyst Paul Raman, CFA has downgraded the shares of auto parts supplier Tenneco, Inc. (TEN) to Hold from Buy. 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. However, elevated commodity costs, oil prices and sizable production cuts at GM (GM) and Ford (F) lead us to rate the stock a Hold. We set a six-month target price of $28.00.
'Currently, shares of Tenneco Inc. are trading at 15.0x our 2007 EPS estimate of $1.75. 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. We set a six-month target price of $28.00 and rate the shares a Hold. This is 16.0x our 2007 estimate.'
Read the full analyst report on TEN.
Read the full analyst report on GM.
Read the full analyst report on F.
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