Midas: Phillips has maintained Buy at TP $1.16 unchanged after news on the Bombardier contract. Forecasted revenue at $55.2m and net profit at $13.2m on back of higher capacity and strong order book from China rail growth and intl market. Highlights that Midas trading at 17.3x forward P/E on estimates, below Midas 5 yr avg of 27x and industry avg of 21x….
Based on current 2010 estimates from Bloomberg, Midas is trading at 22-23x. Given that the Bombardier contract is worth approx Eur20m (Rmb36m), 17% of full year estimated 2010 revenue, company has potential to grow if margins on aluminum remain stable.
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