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Analysts Conflicted on These Consumer Goods Names: CPI Aerostructures (CVU), Amyris (AMRS) and Oclaro (OCLR)


Companies in the Consumer Goods sector have received a lot of coverage today as analysts weigh in on CPI Aerostructures (CVU), Amyris (AMRS) and Oclaro (OCLR).

CPI Aerostructures (CVU)

B.Riley FBR analyst Mike Crawford maintained a Buy rating on CPI Aerostructures yesterday and set a price target of $11. The company’s shares opened today at $7.66.

Crawford commented:

“Buy-rated CPI Aero (CVU-$11 PT) reported 3Q18 results before market open on 11/8, exceeding negatively preannounced results as well as our lowered $19M revenue, $0.13 pro forma EPS projections, with a $20M, $0.17 print. As also disclosed in conjunction with the company’s dilutive $16M equity offering in October, backlog jumped nicely, increasing from $360M at 2Q18 end to $442M at the end of 3Q. We continue to believe (and model) that before year end, CVU will use $10M of proceeds from its 2.76M-share offering at $6.25 to acquire Welding Metallurgy, Inc. (WMI) from foundering microcap Air Industries Group (AIRI), CVU’s Long Island neighbor. We model the other $4M in net proceeds to be applied to reduce debt.”

According to TipRanks.com, Crawford is a 5-star analyst with an average return of 9.1% and a 59.5% success rate. Crawford covers the Consumer Goods sector, focusing on stocks such as Finjan Holdings, Kratos Defense, and Silicon Motion.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for CPI Aerostructures with a $12 average price target.

See today’s analyst top recommended stocks >>

Amyris (AMRS)

B.Riley FBR analyst Carter Driscoll maintained a Buy rating on Amyris yesterday and set a price target of $10. The company’s shares opened today at $7.24.

Driscoll commented:

“Second molecule with Yifan. Prior to market open today (November 8), Amyris (AMRS-Buy, $10.00 PT) announced it has already expanded its agreement with Chinese pharmaceutical giant Yifan Pharmaceutical Co., Ltd. Recall this agreement materialized only roughly a month ago (September 27), and you can see a more in-depth note about the original partnership here. Although the press release provided minimal financial details about the extension, it did state it is a “new multi-million dollar collaboration,” focused on delivering a second vitamin molecule. The company also stated that it received an immediate revenue contribution, which we expect is small but still earlier than expected. Commercialization of the molecule is on a similar time frame as the first molecule – in 2021.”

According to TipRanks.com, Driscoll has currently no stars on a ranking scale of 0-5 stars, with an average return of -7.7% and a 36.0% success rate. Driscoll covers the Industrial Goods sector, focusing on stocks such as Ballard Power Systems, Amer Superconductor, and Canadian Solar Inc.

Amyris has an analyst consensus of Moderate Buy, with a price target consensus of $12.50.

Oclaro (OCLR)

B.Riley FBR analyst Dave Kang maintained a Hold rating on Oclaro today and set a price target of $9.30. The company’s shares opened today at $8.52.

Kang observed:

“Oclaro (OCLR) reported F1Q revenue/EPS of $131.7M/$0.08 versus consensus of $128.1M/ $0.09. The EPS miss was due to a GM decline of 280 bps due to severe pricing pressure in datacom products. The company, as previously indicated, plans to wind down the 100G QSFP28 module business and instead focus on laser chips. The net effect will be lower sales, but significantly higher margins in datacom. F1Q sales increased 8.9% Q/Q, primarily driven by the recovery of shipments to ZTE (763-HKG). The company did not provide F2Q guidance due to the pending acquisition by Lumentum (LITE). OCLR received shareholder approval, and expects the transaction to close in F2Q.”

According to TipRanks.com, Kang is a 5-star analyst with an average return of 19.1% and a 65.3% success rate. Kang covers the Consumer Goods sector, focusing on stocks such as Applied Optoelectronics, Acacia Communications, and Lumentum Holdings.

The word on The Street in general, suggests a Hold analyst consensus rating for Oclaro with a $9.43 average price target.

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