NEW YORK (AP) — Shares of Accuride Corp., which makes parts for commercial vehicles, rose Friday on predictions that the company will continue to grow.
THE SPARK: B. Riley analyst Jimmy Baker backed his "Buy" rating for the company, and boosted his price target by 50 cents to $6, saying that its profits will continue to improve sequentially through the year.
THE BIG PICTURE: Accuride shares took a hit in 2012, as the sluggish economy reduced shipping needs and demand for commercial trucks. But since the beginning of the year, the company's shares have been on the rebound, rising about 33 percent.
On Wednesday the company reported fourth-quarter results in line with guidance it announced in February. It also projected between $800 million and $850 million in sales for 2013.
THE ANALYSIS: B. Riley analyst Jimmy Baker said the revenue guidance beat his expectations of $789 million.
"As we continue to observe stable production and improving demand, we believe Accuride is positioned to display significant sequential improvement throughout 2013," Baker wrote in a note to investors.
THE SHARES: Up 25 cents, or 5.7 percent, to $4.65 in afternoon trading, after peaking at $4.70 earlier in the day. Over the past 52 weeks, the shares have traded between $2.21 and $9.14.