Venture Corp: Citi maintains Buy, but decreases TP to $8.00 from $9.30. House expect muted 2H11 recovery; but Yield Stays Intact.
Lowers FY11-13E ests by 12-19% on expectations of a slower-than-expected rebound in vol sales amid prevailing macro headwinds; 2H11 rebound may not materialize, mgt suggests a cautionary outlook across most of its business divisions.
At current stock price levels (11x FY12E P/E), however, believe most of this bad news has already been discounted; VMS continue to stand out for its resilient margins (6-8%), higher industrial/corporate exposure and attractive div yield (>7%).
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