There’s a lot to be optimistic about in the Consumer Goods sector as 3 analysts just weighed in on Kemet Corp (NYSE: KEM), Brooks Automation (NASDAQ: BRKS) and Ferroglobe PLC (NASDAQ: GSM) with bullish sentiments.
Kemet Corp (NYSE: KEM)
In a report released today, Josh Nichols from B.Riley FBR assigned a Buy rating to Kemet Corp (NYSE: KEM), with a price target of $24.75. The company’s shares opened today at $18.76.
Nichols noted:
“KEMET (KEM) reported strong F4Q18 (Mar) results yesterday, before the open. Revenue of $318M beat our $305M and consensus $307M, as well as guidance of $300M-$310M due to robust demand and supply constraints with a favorable pricing environment. EBITDA of $48M also exceeded our $46M and as well as consensus $47M despite some additional opex, and EBITDA margins increased from 13.8% in F4Q17 to 15.2%. Lastly, pro forma EPS of $0.45 came in well above our and consensus estimates of $0.40 and $0.41, respectively. F1Q19 (Jun) revenue guidance of $310M-$320M came in above our prior $309M projection, and the midpoint of the gross margin guidance range of 27.5%-29.5% was above our previous 28.1% estimate.”
According to TipRanks.com, Nichols is a 5-star analyst with an average return of 28.4% and a 51.3% success rate. Nichols covers the Consumer Goods sector, focusing on stocks such as Adesto Technologies Corp, Pointer Telocation Ltd, and Immersion Corp.
Kemet Corp has an analyst consensus of Moderate Buy, with a price target consensus of $24.75.
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Brooks Automation (NASDAQ: BRKS)
In a report released today, Craig Ellis from B.Riley FBR assigned a Buy rating to Brooks Automation (NASDAQ: BRKS), with a price target of $40. The company’s shares opened today at $29.29.
Ellis noted:
“Brooks Automation (BRKS) hosts its second Analyst day on 5/22 at 9:00 am ET in New York City. We expect presentations from CEO Schwartz, CFO Semi SVP Jarzynka focused on company strategy and long-term financial targets. A confident tone seems likely. Indeed, we credit the team with increasing quarterly EPS almost 3x since the last such event two years ago, during which time shares have risen about 3x. Favorable industry dynamics helped, but each business segment was largely rebuilt. Further optimization potential exists and is the day’s focus along with a target financial model update where we expect the basis to extend from FY19 to FY21 and, if so, we see potential for sales and EPS bogies rising from $870.0M/$1.80 toward $1.0B/$2.25.”
According to TipRanks.com, Ellis is a top 25 analyst with an average return of 38.2% and a 80.7% success rate. Ellis covers the Consumer Goods sector, focusing on stocks such as Silicon Laboratories, Applied Materials, and Texas Instruments.
Brooks Automation has an analyst consensus of Moderate Buy, with a price target consensus of $40.
Ferroglobe PLC (NASDAQ: GSM)
In a report released today, Sarkis Sherbetchyan from B.Riley FBR reiterated a Buy rating on Ferroglobe PLC (NASDAQ: GSM), with a price target of $20. The company’s shares opened today at $10.70.
Sherbetchyan said:
“PT) will report 1Q (Mar) results before the market opens on and will host its earnings call at 9:00AM ET (dial-in: conference ID 7495697). We forecast revenues/adjusted $87M/$0.17 compared to consensus $559M/$84M/$0.16, respectively. GSM’s metals pricing expectations into 2H18 will likely be the focus on the 1Q earnings conference call. GSM shares sold off ~24% on 3/23 as the U.S. International Trade Commission (ITC) determined that silicon metal imports from certain countries did not injure the U.S. industry. While we concede U.S. silicon metal prices would need to reset lower, the selloff implies dramatic downside risk to annual EBITDA, which seems irrational.”
According to TipRanks.com, Sherbetchyan is ranked #613 out of 4801 analysts.
Currently, the analyst consensus on Ferroglobe PLC is Strong Buy and the average price target is $17.50, representing a 63.6% upside.
In a report issued on May 8, Oppenheimer also assigned a Buy rating to the stock.
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