Analysts Are Bullish on These Conglomerates Stocks: HC2 Holdings (HCHC), Arotech Corp (ARTX)


There’s a lot to be optimistic about in the Conglomerates sector as 2 analysts just weighed in on HC2 Holdings (NYSE:HCHC) and Arotech Corp (NASDAQ:ARTX) with bullish sentiments.

HC2 Holdings (HCHC)

B.Riley FBR analyst Sarkis Sherbetchyan maintained a Buy rating on HC2 Holdings yesterday and set a price target of $13.50. The company’s shares opened today at $5.99.

Sherbetchyan commented:

“PT) reported 2Q revenue/adjusted EBITDA from its core operating subsidiaries that exceeded our model. Shares rose ~7% in aftermarket trading. Operating results from the two largest segments, construction and marine services, drove the beat relative to our forecasts. HCHC also reaffirmed the FY18 adjusted EBITDA guidance for the construction and marine services segments. Thus, our FY18 adjusted EBITDA estimates for construction/marine services remain largely unchanged. We modestly lower our FY18/FY19 core adjusted EBITDA estimate, from $122M/$126M to $119M/$125M, due to softer-than- anticipated results from the energy/telecom segments.”

According to TipRanks.com, Sherbetchyan is a 4-star analyst with an average return of 13.0% and a 65.9% success rate. Sherbetchyan covers the Consumer Goods sector, focusing on stocks such as Lightpath Technologies, Vishay Precision Group, and Ferroglobe PLC.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for HC2 Holdings with a $13.50 average price target.

See today’s analyst top recommended stocks >>

Arotech Corp (ARTX)

B.Riley FBR analyst Mike Crawford maintained a Buy rating on Arotech Corp yesterday and set a price target of $4.50. The company’s shares opened today at $3.55.

Crawford observed:

“Buy-rated Arotech (ARTX, $4.50 PT) reported 2Q18 after market close, Tuesday, 8/7, and conducted its conference call pre-market on 8/8. While we were looking for a potential beat & raise scenario that might shift ARTX’s expected earnings inflection forward from FY19 to 2H18, this did not happen due to Power Systems misstepping on transition from prototype to Vehicle (AAV) electrical kit conversion— the System, or DPCMS—that we believe ultimately will be a $50M program for ARTX. As a result, despite a Training & Systems revenue beat at $14.4M revenue in 2Q vs. our $12.0M projection, overall top line missed at $21.9M (vs. our $23.8M) as Power Systems revenue limped in at $7.5M in the period vs. our $11.8M estimate.”

According to TipRanks.com, Crawford is a 4-star analyst with an average return of 9.2% and a 59.6% success rate. Crawford covers the Consumer Goods sector, focusing on stocks such as Finjan Holdings, Kratos Defense, and Silicon Motion.

Currently, the analyst consensus on Arotech Corp is a Moderate Buy with an average price target of $4.50.

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