I have been basing my #'s on the Average Analyst estimate for 2008 earnings of $10/share, At a PE of 16.5 = $160/share. 16x forward earnings. My higher target is based on continued strong demand for their products + increases in forward estimates that I think are coming coupled with the nice little dividend payout they give us. Critical to this is the opportunity to move into additional markets as well as the HUGE premium being paid by any potential takeover. I would accept nothing less then $185 in a takeover and project $215+ if they continue on their earnings trend.
Thanks for your response; however, I notice you indicate that the average analysts estimates for 2008 are $10. Yahoo is indicating $11 plus for year ending June 2008. Where are you gettting your numbers? Thanks again for any response.