Markets & Finance

JP Morgan Cuts Sirva to Neutral

JP Morgan cut Sirva Inc. (SIR) to neutral from overweight.

Analyst Bradley Safalow says third-quarter earnings per share were below his and the consensus 53 cents estimte. Earnings were impacted by a $15 million charge to raise insurance loss reserves. He says, excluding the charge, earnings per share would have been 47 cents, still below estimates, which can be tied to weaker-than-expected results in Europe.

He cuts the company's $1.18 2004 earnings-per-share estimate to 85 cents, and $1.48 2005 earnings-per-share estimate to $1.26. Although he doesn't see any positive catalyst for Sirva in the near term, he says today's pullback could present interesting opportunity for long-term investors looking to own attractively-valued companies with leverage to improving labor markets.

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