) was higher after USB Piper initiated coverage with strong buy, and a price target of $37. Analyst Brent Rystrom said the company is the dominant participant in the design and marketing of licensed motor sports merchandise, with product offerings that include die-cast race car replicas for mass market, apparel, souvenirs, and other memorabilia. The analyst adds rising EPS, improving profitability, greatly diminished risk profile should all combine to push valuation higher over next few years. He adds the company should be valued at multiple commensurate with its long-term EPS growth rate, which he targets at 20%-25% annually over next 3-5 years. He sees $1.37 FY 01 (Sep) EPS, $1.85 FY 2002.
Markets & Finance
USB Piper Starts Action Performance at Strong Buy
Action Performance Companies (ACTN