ArvinMeritor downgraded to "underweight"

10/03/06 - KeyBanc Capital Markets

NEW YORK, October 3 (newratings.com) - Analyst Brett D Hoselton of KeyBanc Capital Markets downgrades ArvinMeritor Inc (ARM) from "hold" to "underweight," while reducing his estimates for the company. The target price is set to $10.

In a research note published yesterday, the analyst mentions that the consensus projections for 2007 are expected to be adversely impacted by higher stainless steel costs and reduced commercial truck production. The EPS estimates for FY06 and FY07 have been reduced from $1.75 to $1.70 and from $1.10 to $0.95, respectively, to reflect the recent production cuts primarily at DaimlerChrysler.