There’s a lot to be optimistic about in the Conglomerates sector as 2 analysts just weighed in on Arotech Corp (ARTX) and HC2 Holdings (HCHC) with bullish sentiments.
Arotech Corp (ARTX)
B.Riley FBR analyst Mike Crawford maintained a Buy rating on Arotech Corp today and set a price target of $4.50. The company’s shares opened today at $3.10.
Crawford observed:
“Buy-rated Arotech (ARTX, $4.50 PT) reported 4Q18 results after market close 3/6 and held its earnings call pre-market on 3/7. Shares traded down 8.5% (and initially were down further; vs. -0.9% for the mixed print, where top-line was below our estimate but the company beat on EBITDA and pro forma EPS. We believe shares sold off primarily on 2019 guidance, which at midpoint implies organic revenue growth of 13%, EBITDA growth of 10%, and EPS growth of 17%—all nice but slightly below our prior projections. After adjusting our model, we shift our FY19 revenue/EBITDA, and EPS estimates from $108M, $10.6M, and $0.28 to $106M/$8.9M/$0.21, respectively.”
According to TipRanks.com, Crawford is a 4-star analyst with an average return of 7.4% and a 56.0% success rate. Crawford covers the Consumer Goods sector, focusing on stocks such as Kratos Defense, Silicon Motion, and Ducommun Inc.
Arotech Corp has an analyst consensus of Hold.
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HC2 Holdings (HCHC)
In a report released today, Sarkis Sherbetchyan from B.Riley FBR reiterated a Buy rating on HC2 Holdings, with a price target of $13.50. The company’s shares opened today at $2.99, close to its 52-week low of $2.31.
Sherbetchyan noted:
“Buy-rated HC2 Holdings (HCHC—Buy, $13.50 PT) reports 4Q18 results after market close on Tuesday, 3/12, and will host its EPS call at 5:00PM ET (dial-in: 866.395.3893; ID: 3480439). We model revenues/adjusted EBITDA of $430M/$40M from HCHC’s core operating subsidiaries (construction, marine services, telecom, and energy), and outline our 4Q expectations for the segments in Exhibit I: “Segment Level Estimates” on page 2 of this report. We are the only analyst with published estimates. In 4Q, HCHC extended the debt maturity (albeit at a high price), closed the acquisition of GrayWolf (which should be accretive to the construction segment’s EBITDA), and is in the process of evaluating strategic alternatives for the marine services subsidiary (including a potential sale).”
According to TipRanks.com, Sherbetchyan is ranked #2722 out of 5220 analysts.
HC2 Holdings has an analyst consensus of Moderate Buy, with a price target consensus of $13.50.
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