Dan River rating reinforced
June 20, 2002,
Charlotte, NC — Citing increased demand through the first five months of the year for Dan River products and stepped-up production following an inventory workdown, Wachovia Securities has reiterated its "buy" rating on Dan River bonds and increased its earnings estimate for the textiles producer.
A better-than-expected first-quarter performance, fueled by strong margin improvement and plants running at or near capacity, have improved the company's outlook and financial condition, said Jeffrey Stewart, a high-yield analyst for Wachovia and a long-time textiles stock watcher, in a research note to investors.
Because of the company's "dramatically changed outlook," Stewart said he's now forecasting sales of $160 million for the second quarter, roughly unchanged from last year, and an improvement over a 3.4 percent drop in the first quarter. For all of this year, Stewart projected sales of $650 to $670 million, about flat with last year.
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