William Blair analyst Ralph Schackart this morning pounded the table on RealD (RLD) shares, asserting that the Street has been too bearish on the stock.
Schackart notes that he met with management on Friday, and came away impressed. “Management�s commentary remained as bullish and confident as it did during the company�s IPO process,” he writes in a research note. “Overall, we believe business momentum remains strong, contrary to recent negative headlines. RealD is taking market share worldwide, and the company demonstrated its new and inexpensive 3-D TV platform (very compelling), which should materialize in 2012.”
He advises investors to “aggressively” buy the stock, with the stock trading at 9.5x EV/EBITDA based on 2012 estimates, or 6.2x based on 2013 estimates, with a PE of 23x FY 2012 and 16.4x FY 2013.
“The recent headlined of ’3D is over’ are simply not true,” he contends. “There are roughly 25 3-D movies in 2010 (should scale to 40-50 in the next few years), an estimated 20,000 3-D screens in 2010, and a projected 30,000-plus in 2011. RealD is taking market share, and the company said that demand of for 3-D screen installs has been exceptionally strong.”
Someone is listening to you, Ralph: RLD is up $1.56, or 9.5%, to $17.91.
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