Lipman Electronic Engineering Ltd (LPMA) (LPMA)

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CIBC lifts forecasts for Lipman

12.1.06 | 10:19 By Asaf Rothem
CIBC World Markets took a nice long look at Lipman Electronic Engineering (Nasdaq, TASE: LPMA) at the end of 2005. Also factoring in its many encouraging announcements about new customers, the investment bank decided to raise its forecasts for the Israeli company's second quarter and year 2005.
The analysts raised their fourth-quarter forecasts by $2 million to $67.5 million, while earnings per share was lifted by two cents to 38 cents per share, or $10.4 million.

For the year 2005 CIBC World Markets expects Lipman to achieve $234 million sales, and to net $34.7 million or $1.26 per share.
However, it repeated its Sector Perform investment rating, and 12-month price target of $27.
CIBC sees Lipman gaining momentum in several strategic areas. Earlier in 2005, Lipman had been forced to downscale forecasts because its English subsidiary Dione had been doing badly. But afterward, Dione products played an important role in Lipman's entry into the German and Mexican markets, the analysts say. By and large the analysts feel the trouble at Dione is over.
Business is back on track in the U.S. too, they add, where a new distribution agreement with the NOVA corporation could add momentum to 2006 sales.
Also, in November, Lipman reported an important contract in India, where its local subsidiary is starting to meet expectations.

The investment bank also lifted its forecasts for 2006 to $268.1 million sales (from $265.8 million), and earnings per share of $1.40 (compared with $1.35).

http://www.haaretz.com/hasen/spages/669557.html

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