Vision Systems Could Be A Buy Next Year

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By Rudi Filapek-Vandyck

Don’t expect anything in terms of profit growth at Vision Systems (VSL), because you are likely to end up disappointed if you do, equity broker Austock suggests. But that doesn’t mean the stock should not be considered investment grade.

For the time being Austock rates Vision Hold with a price target of $2.10 (share price is circa $1.70). EPS forecasts are 4.6c this year and 4.5c next. Which says it all, really.

But management has all the tools at hand to make this outlook change, Austock believes. It’ll probably take another 6 to 12 months, but if operational traction could take off by then, Austock believes we could be talking a price target of $3.00 in 18 months from now.

UBS and Deutsche Bank used to cover Vision Systems as well, but they ceased coverage last year. Aspect Huntley currently rates the stock Hold, while JP Morgan rates it Overweight with a twelve month target of $2.66.

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