Goldman Sachs JBWere has cut its earnings estimates for Coventry by 29 per cent to 48 per cent for the 2008-09 to 2010-11 financial years. However, it has maintained its "hold" recommendation on the stock following the motor vehicle and industrial parts maker's profit warning on Monday. Coventry said net profit after one-offs was expected to be significantly below last year's $6.9 million and that normalised earnings before interest and tax (EBIT) would be "very close" to last year's $10 million. The profit fall was largely due to weakness in its industrial products business, which had been hit hard by the slowing resource sector. On a brighter note, its automotive and gasket divisions posted a decent performance. However, the broker said revenues from these businesses were not enough to offset the losses and forecasts Coventry's second-half EBIT for the six months to June 30, 2009, will fall to about $3 million from the first-half's result of $7 million. Although the stock is trading well below its net tangible book value of $3.30 a share, the broker feels management will need to prove itself, as Coventry has a "disappointing earnings track record". The stock closed at $1.13 on Monday when this research report was prepared. GSJBW has a 12-month price target of $1.50 a share.