Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of industrial equipment maker Edwards Group (Nasdaq: EVAC ) rose as much as 11% today after coverage was initiated by an analyst.
So what: Goldman Sachs initiated coverage on the stock with a buy rating and a $13 price target. The price target indicates a 67% upside from the current share price, a big jump for the stock.
Now what: We don't take analyst ratings too seriously, and the market has already cut off half of today's gains. The company's 11.3 trailing P/E ratio seems attractive, but revenue fell 10.3% last quarter and second-quarter outlook is for only 8-9 pence per share in earnings. I wouldn't buy on today's announcement alone, and I would like to see revenue heading in a positive direction before I would throw any money into Edwards Group.
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