There’s a lot to be optimistic about in the Consumer Goods sector as 3 analysts just weighed in on Koppers Holdings Inc (NYSE:KOP), Motorcar Parts Of America (NASDAQ:MPAA) and Alpha and Omega (NASDAQ:AOSL) with bullish sentiments.
Koppers Holdings Inc (KOP)
B.Riley FBR analyst Liam Burke maintained a Buy rating on Koppers Holdings Inc today and set a price target of $60. The company’s shares opened today at $35.05, close to its 52-week low of $33.65.
Burke said:
“Koppers (Buy, $60 PT) reported lower than expected Y/Y EBITDA with strength in Carbon Materials & Chemicals (CMC) offset by lower Y/Y EBITDA in both Railroad & Utility Products (RUP) and Kopper Performance Chemicals (KPC). The company is maintaining its full year guidance based on continued strength of CMC, Y/Y improvement in RUP EBITDA margins for the first time in eight quarters, and the benefit of acquisitions. Due to recent acquisitions, net debt to trailing twelve month EBITDA was 3.9x but the company anticipates reducing that ratio to 3.5x by year-end 2018 and shifting enterprise value from the debt to the equity holders. Based on a very attractive risk/reward tradeoff, we are maintaining our Buy rating on KOP shares. Our price target of $60 implies an EV-to-forward EBITDA multiple of 9.0x.”
According to TipRanks.com, Burke is a 3-star analyst with an average return of 4.2% and a 60.5% success rate. Burke covers the Industrial Goods sector, focusing on stocks such as Standex International Corp, Lincoln Electric Holdings, and Carlisle Companies Inc.
Currently, the analyst consensus on Koppers Holdings Inc is a Moderate Buy with an average price target of $60.
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Motorcar Parts Of America (MPAA)
B.Riley FBR analyst Christopher Van Horn reiterated a Buy rating on Motorcar Parts Of America today and set a price target of $39. The company’s shares opened today at $23.44.
Van Horn commented:
“We view the F1Q revenue headwinds as well as the lower fixed cost absorption as largely transitory challenges. MPAA also indicated that it expects adj. gross margin to sequentially improve through the fiscal year, which is about in line with our expectations; the company confirmed its FY19 adj. gross margin guidance of 27%-30% vs. our 28.4% (consensus, 28.3%). All in, adj. diluted EPS were $0.15 vs. our $0.19 (consensus, $0.18). While results were a bit lower than expected, we think that shares have been pricing in risk of below-expectations results based on a somewhat challenging demand environment within the U.S. auto aftermarket, and we further believe that management’s confidence regarding the remainder of FY19 could serve as a positive signal for the market. We reiterate our Buy rating and $39 price target on MPAA shares.”
According to TipRanks.com, Horn is a 4-star analyst with an average return of 9.3% and a 57.8% success rate. Horn covers the Industrial Goods sector, focusing on stocks such as Superior Industries International, Tower International, and Park-Ohio Holdings.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Motorcar Parts Of America with a $30.50 average price target.
Alpha and Omega (AOSL)
B.Riley FBR analyst Craig Ellis maintained a Buy rating on Alpha and Omega yesterday and set a price target of $23. The company’s shares opened today at $15.44.
Ellis wrote:
“Alpha & Omega Semiconductor’s (AOSL) multi-year quarterly sales outperformance record was sustained in F4Q18, with GM in line and OM 2x our expectation. Ahead, the outlook was visibly better than we previewed and handily above consensus, driven by Comms strength and a powerful and company-specific GM surge. Overall, it represented another quarter of solid AOSL execution as it has now substantially overcome prior supply tightness with new high margin product launches even as strategic product and manufacturing initiatives are on track to kick in through FY19. We believe the following four points support our positive thesis. First, a newly-minted +10.0% FY19 Y/Y sales growth target shows confidence in new product execution, sustain end market momentum, and we believe further content increases.”
According to TipRanks.com, Ellis is a top 25 analyst with an average return of 35.5% and a 77.6% success rate. Ellis covers the Consumer Goods sector, focusing on stocks such as Sequans Communications S A, Axcelis Technologies, and Silicon Laboratories.
The word on The Street in general, suggests a Hold analyst consensus rating for Alpha and Omega with a $18 average price target.
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