BancBoston Robertson Stephens Reiterates Buy Rating on TWR
30 June 1999
BancBoston Robertson Stephens Reiterates Buy Rating on TWR
SAN FRANCISCO, June 29 -- The following is being issued by
BancBoston Robertson Stephens, a member of the National Association of
Securities Dealers, CRD number 41271:
BancBoston Robertson Stephens managing director and senior industrial
growth analyst Michael R. Mach today reiterated his Buy rating on
Tower Automotive, Inc. . Tower is a leader in supplying car and
light truck manufacturers with components that provide vehicles with
structural integrity. The company is the world's largest supplier of chassis
structures and a leading global designer and manufacturer of high quality
engineered metal stampings, assemblies and modules.
"We are reiterating our Buy rating on Tower Automotive following the
company's announcement that it intends to acquire a 49 percent stake in
Seojin Industrial Company," said Mach. "We view the proposed acquisition
favorably, as it would increase Tower's capability and presence in Asia.
Seojin's focus on supplying frames and structural parts to Korean automotive
OEMs, builds on Tower's leading global position as a provider of assemblies
and modules for vehicle structures and suspension systems.
"Assuming the transaction is successfully completed in fourth quarter
1999, we expect it to be accretive to Tower's earnings per share in 2000,"
said Mach. "However, pending formal completion of the transaction, we are
leaving our 2000 estimate unchanged.
"Over the last five years, Tower has compounded its sales and earnings per
share at average annual rates of 57 and 35 percent, respectively, through a
combination of strategic acquisitions and successful management of acquired
operations," said Mach. "As Tower continues to move along its well-defined
growth plan, we expect its stock price will advance toward our 12-month price
target of $33. We believe our price target could prove to be conservative,
based on Tower's recent acquisition announcements. "
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