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Canaccord Genuity Updates Buy Recommendation for Martinrea International (TSX: MRE) May 6th

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Canaccord Genuity has updated coverage on Martinrea International, which trades on the Toronto Stock Exchange, under the symbol MRE.

Additional Information:

Company: Martinrea International
Website: http://www.martinrea.com/Public/Home.aspx
Stock Symbol: TSX: MRE
Date Published: May 6, 2013
Transcript: Available

Video Transcript:

I’m Ashleigh Willows for InvestmentPitch.com

Canaccord Genuity has updated coverage on Martinrea International, which trades on the Toronto Stock Exchange, under the symbol MRE.

Following the release of results for the first quarter ended March 31, 2013, analyst David Tyerman reiterated his buy recommendation, increasing his target price to $12.00, a premium of 42% over the $8.43 price the day the report was issued.

Martinrea, a leader in the production of quality metal parts, assemblies and modules and fluid management systems focused primarily on the automotive sector, employs more than 12,000 people in Canada, the United States, Mexico, Brazil, Europe and China.

Customers include Ford, General Motors, Chrysler, Jaquar Landrover, Nissan, VW and BMW.

The company reported consolidated revenues of $769 million, an increase of 4.5% over the first quarter of 2012.

Results improved sequentially as launch facilities improved and European restructuring efforts bore fruit.

Rob Wildeboer, Executive Chairman, stated: “The 2013 financial year is off to a solid start, and we believe it will be a record year for revenues and earnings for us. Our second quarter is expected to generate record revenues (excluding tooling revenues) in the range of $750 to $770 million, and we believe our earnings per share will be in the range of 30 to 34 cents per share, an upward trend from our first quarter and a record quarter for us from an earnings perspective.”

Analyst David Tyerman stated, “We continue to recommend buying Martinrea for superior share price appreciation potential from very strong earnings per share growth. We continue to project 51% EPS growth from 2012 to 2014E, powered by organic growth and especially related margin expansion.”

Martinrea trades at $9.10, and with 84 million shares outstanding, is capitalized at $764 million.

For more information, please visit the company’s website www.martinrea.com, or contact Fred Di Tosto CFO at 416-749-0314 or email investor@martinrea.com.

For more information about Canaccord Genuity or to obtain a copy of their research report, contact your nearest Canaccord Genuity office. Their branches are listed on their website at www.canaccord.com.

I’m Ashleigh Willows for InvestmentPitch.com
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This video is for information purposes only and it is not a recommendation to buy or sell any securities.