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Roth Capital upgraded Ceradyne (CRDN
) to buy from hold.
Analyst Steven Gish says the House recently passed the fiscal 2005 (Sep.) National Defense Authorization Act, allocating over $400 million for body armor. He says Ceradyne stands to benefit directly from this funding as it's one of leading providers of small arms protective inserts.
Gish notes new contracts could come down this summer, which would also bode well for the company. In addition, he thinks that Ceradyne's recent acquisition of Quest Technology could benefit its orthopedic segment in the long run. He raised the $1.22 2004 EPS estimate to $1.27, and upped the $1.35 2005 estimate to $1.44. He has a $38 target.