) to overweight from equal-weight.
Analyst William Chappell Jr. says he believes recent production delays have allowed the company to reset the bar in terms of production, and allowed its distributors to flush out excess inventory. He thinks new body styles for 2003 die-cast cars will actually stimulate demand from the collector community.
Chappell notes a month ago he intentionally cut his estimates to reflect a worst-case scenario. He sees $2.57 fiscal 2003 (Sept.) earnings per share, vs. the company's $2.85 to $3.00 guidance. Despite his conservative estimate, he notes the stock is trading at a discount to the luxury goods/collectible peer group.