Thursday, January 27, 2011

Polypore International's (NYSE:PPO) Gross Margins Better Than Expected

Polypore International (NYSE:PPO) appears to have placed themselves in the position of producing another solid quarter, and it doesn't hurt that gross margins are better than believed.

Needham says, "We believe Polypore is positioned to deliver another solid year of financial performance. The major businesses are positioned to benefit from better demand and ongoing capacity expansion efforts. In our view, there 'ain't no dogs in the company's portfolio of businesses...We are increasing our 4Q10 operating EPS estimate to $0.35 (from $0.33) and our FY11 EPS estimate to $1.71 (from $1.54) to reflect a better gross margin profile than initially anticipated."

Needham & Company maintains a "Strong Buy" on Polypore International (PPO), which closed Wednesday at $47.49, up $2.62, or 5.84 percent. Needham raised their price target on Polypore from $38 to $50.

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