KeyBanc Downgrades NN, Inc (NNBR) to Hold; Delayed Profit Recovery

KeyBanc downgraded NN, Inc (NASDAQ: NNBR) from Buy to Hold.

KeyBanc analyst says, "Delayed profit recovery of NN, Inc.'s base business along with extended start-up costs, and more gradual revenue ramp for new projects at Whirlaway result in the move in our near-term rating to HOLD...We have raised our NNBR EPS estimates for 2011 and 2012 to $1.50 (from $1.40) and to $1.75 (from $1.55), respectively, to reflect better than expected top-line momentum in 1H11. Our revised outlook is below other recent Street-high revisions to $1.65 and $2.00 for 2011 and 2012, respectively. While top-line visibility across NNBR's base business is extending well into 2Q11, NNBR has still not capitalized on its internal profitability recovery opportunities via the delays in Whirlaway new project ramps; but more important is the more gradual than expected incremental profit recovery in the base business, despite better than expected 1Q11 revenues and exceptional cost reduction initiatives over the past several years."

For more ratings news on NN, Inc click here and for the rating history of NN, Inc click here.

Shares of NN, Inc closed at $17.82 yesterday.

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