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Sell-off in Fuel Systems Solutions way overdone

February 19th, 2010 · No Comments

They went from above $50 to below $30 in a couple of weeks. But they also just increased 2009 guidance…
UPDATE 1-Fuel Systems Solutions raises 2009 rev view
Fri Feb 19, 2010 9:07am EST

* Ups 2009 rev view to $450 mln from $415 mln-$425 mln
* Shares up 9 pct in pre-market trade

Feb 19 (Reuters) – Fuel Systems Solutions Inc (FSYS.O) raised its 2009 revenue outlook and said it is benefiting from the growing delayed original equipment manufacturer (DOEM) market, particularly in Italy, sending its shares up 9 percent.

In 2009, the company, an alternative fuel components maker, expanded its capacity to supply the DOEM market in Europe, and Italy in particular, Chief Executive Mariano Costamagna said in a statement.

Incentives designed to help Italy catch up with European Union efforts to fight climate change have attracted funds from investors ranging from families to private equity funds and sports car maker Ferrari.

Analysts expect Italian subsidies for bi-fuel systems to be the key driver of the company’s growth going forward.

Fuel Systems sees 2009 revenue of about $450 million, up from its prior estimates of $415 million to $425 million.

Analysts on average were expecting revenue of $426 million, according to Thomson Reuters I/B/E/S.

Shares of the company rose 9 percent to $32.80 in pre-market trade. They closed at $30.08 Thursday on Nasdaq.

——–[End of article]———

See the graph here, there is room on the upside:

Tags: FSYS