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AG Edwards upgraded Speedway Motor (TRK
) to buy from hold.
On Monday the company introduced a dividend policy. Analyst Timothy Conder says his upgrade is based on attractive valuation, continued solid fundamentals, and the initiation of a dividend policy. Conder says he thought the new dividend policy would be initiated, but not until next year. He says cash flow is in better shape than he anticipated.
Also, Conder says he's impressed with the company's corporate commitment to NASCAR. He believes Speedway Motor is well positioned to provide investors with a strong positively skewed risk/reward ratio given the relatively good visibility and upside appreciation potential. He sees $1.42 2002 earnings per share, and $1.63 for 2003. Conder has a $27 target.