Ituran Location and Control "buy," target price reduced

11/20/07 - UBS

NEW YORK, November 20 (newratings.com) - Analysts at UBS maintain their "buy" rating on Ituran Location and Control Ltd (ITRN), while reducing their estimates for the company. The target price has been reduced from $17 to $15.

In a research note published this morning, the analysts mention that the company has posted its subscriber growth for the recent quarter marginally short of the estimates. The robust return of $60 million on Ituran Location and Control’s initial investments of $10 million places the company in a good position to make strategic acquisitions, the analysts say. The EPS estimate for 2007 has been reduced from $0.76 to $0.69, to take into account higher operating expenses due to a rise in marketing costs for new services. The EPS estimate for 2008 has been reduced from $0.99 to $0.63, to reflect the disposal of the Telematics business.