Motorcar Parts Of America: Roth Capital Provides Key-Takeaways From Meeting With Management
In a research report issued to investors today, Roth Capital analyst Matt Koranda reiterated a Buy rating on Motorcar Parts Of America (NASDAQ:MPAA) with a $30 price target, following meeting with MPAA management at the company’s headquarters in Torrance, CA.
Koranda wrote, “We came away from our meetings encouraged that MPAA can grow at a sustainable top line rate of 15% in the coming years as it (1) wins new business in its existing product lines; (2) rolls out new products in the undercar, non-discretionary category (distribution model expected); and (3) has the potential to add opportunistic tuck-in acquisitions. In the near-term, we have increased confidence that new business wins (across all MPAA’s product lines) are likely to hit the I/S during FQ4’15, driving substantial revenue growth of >25% YoY in FQ4. Moreover, we see multiple potential positive catalysts ahead, including: (1) incremental new business wins in MPAA’s existing product lines; (2) new product introductions in the non-discretionary, undercar category; and (3) the potential to move into remanufacturing with newly introduced product lines.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Matt Koranda has a total average return of -10.4% and a 20.0% success rate. Koranda is ranked #2936 out of 3318 analysts.