ORLANDO, Fla., Dec. 15, 2006 (PRIME NEWSWIRE) -- RedChip Independent, a division of RedChip Companies, announced today that they have issued a research update on Zhongpin, Inc. (OTCBB:ZHNP).
Lisa Springer, CFA, MBA, RedChip Research Analyst, wrote in the report:
"At a current price of $8.50, Zhongpin, Inc. shares trade at 19 times projected 2006 earnings. Similar United States pork processors, who have much lower growth rates, are currently trading at seventeen times projected earnings. In addition, Zhongpin, Inc. shares trade at a much lower PEG (P/E to earnings growth) ratio. The Company trades at a 0.6 PEG ratio; its United States peers trade at a 1.8 average PEG ratio. We think the Company's competitive advantages and consistent track record of superior growth warrant a higher valuation. Consequently, we have rated Zhongpin, Inc. shares a Buy and are increasing our one year price target to $10.00, based on a twenty-three times forward P/E."
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RedChip Independent Research Disclosure
The analysts contributing to this ZHNP RedChip report do not hold any shares of ZHNP. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the ZHNP RedChip report. Additional information on the securities mentioned in this report is available upon request. This ZHNP RedChip report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the ZHNP RedChip report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. ZHNP is not a client of RedChip Companies, Inc., or any of its affiliates.