Friday, KeyBanc Capital initiated coverage of CIRCOR International, Inc. (CIR) stock with a Hold rating. The brokerage established its 2009 EPS estimate of $1.71, and its 2010 estimate of $1.67.
Analyst Matt Summerville said that his EPS estimates incorporate these anticipated costs during the fourth quarter and he also has made an assumption regarding asbestos expenses for 2010 largely based on recent quarterly guidance. The analyst's estimates and CIR's guidance exclude the impact from other one-time items and special charges.
In the analyst's view, CIR shares may be attractive for investors seeking exposure to what are arguably later cycle markets such as upstream oil/gas, commercial aerospace, chemical and power generation and could be appropriate for those that believe natural gas and oil prices may be poised to move more meaningfully to the upside over the next several quarters.
However, the analyst believes certain of its businesses (oil/gas-related in particular) are likely facing ongoing pricing pressure and challenges stemming from inventory destocking in the wake of soft demand and he believes it may be a bit premature to be more positively disposed toward a company with such a sizable portion of later cycle market exposures.
Currently, CIR is up $0.21 or 0.84% and trading at $25.21.
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