Raymond James upgraded its investment recommendation on shares of Metrologic Instruments (MTLG) to outperform from market perform.
Analyst Chris Quilty says he upgraded the stock following a market-driven, 25%-plus pullback in Metrologic's share price over the past couple of months. He says the stock is now trading at a slight discount to his original initiation price. Quilty notes that Metrologic has exceeded arnings per share estimates over the last four quarters, and he has gained increased confidence in its ability to beat estimates on a going-forward basis. The analyst says the company has yet to experience any big increase from its 2003 new product launch effort that has effectively doubled its addressable market. He notes Metrologic also plans to introduce 15 new products in 2004. Quilty sees Metrologic reporting earnings per share of 78 cents in 2004 and 94 cents in 2005. He has a $28 target price on the stock.