Ceradyne (NASDAQ:CRDN): Expect Tomorrow's Scheduled Business Update to be Positive - Broadpoint

Boradpoint Capital is positive on Ceradyne (NASDAQ:CRDN) saying that on the scheduled business update call tomorrow, they expect the co to reiterate its initial CY08 EPS guidance of $5.60-$6.65 on revenues of $780M-$1.07B.

There has been some speculation that initial MRAP II test results may not have been positive. Their checks indicate no definitive results on this front so far. As the vehicles have already been returned to the company after the ballistic test, they expect the company to talk about the initial analysis on the test.

Firm continues to expect more body armor orders in the near term. While existing orders would take the company's current body armor shipment run-rate through the end of this year, there have been doubts about the company getting new orders to sustain this run-rate through the end of 1Q:CY08. They expect management to reiterate their confidence in upcoming body armor orders and future orders for the next-generation XSAPI body armors.

The stock currently trades at less than 8x firm's CY08 EPS estimate, which does not include any contribution from the MRAP II program. They believe this presents a strong buying opportunity. Reits Buy and $84 tgt.

Notablecalls: CRDN stock looks ready for a bounce, in my opinion.