Oppenheimer Reiterates Outperform On Flir, $40 PT
In a research report issued Monday, Oppenheimer analyst William Lee reiterated an Outperform rating on Flir (NASDAQ:FLIR) with a price target of $40.00.
Lee noted, “FLIR reported strong 3Q14 results, with sales and EPS both beating our targets. The commercial business grew at a double-digit clip (+11% YoY), while government pared the rate of decline to 4%. With Surveillance posting another quarter of impressive bookings (1.3x B:B, above normal order seasonality), we believe this business is approaching the bottom. Uncertainty in Europe could complicate the trajectory, but demand from the Middle East region could help offset some of the weakness. Operationally, FLIR’s ongoing restructuring is progressing well and this initiative yielded cost savings of $6M+ in 3Q14 with similar savings anticipated moving forward. Overall, we view FLIR as a compelling secular growth story edging closer to the inflection point.”