There’s a lot to be optimistic about in the Conglomerates sector as 2 analysts just weighed in on ExOne (XONE) and Tecnoglass Inc (TGLS) with bullish sentiments.
ExOne (XONE)
B.Riley FBR analyst Christopher Van Horn reiterated a Buy rating on ExOne today and set a price target of $12. The company’s shares closed yesterday at $8.51.
Van Horn noted:
“ExOne (XONE) remains, in our view, an attractive opportunity for investors seeking a way to play long-term adoption of 3D printing technology in the manufacturing setting. The company can experience some lumpiness in quarter-to-quarter revenue because it ships few systems at very high ASPs in each period; accordingly, the timing of revenue recognition for each unit will usually have a material impact on total sales. As anticipated, timing of recognition resulted in a Y/Y decline in revenue for 1Q19, though we modestly underestimated the negative delta, which was -19% Y/Y vs. our -9% Y/Y . Nonetheless, we see the quarter positively based on a meaningful sequential rebound in backlog–from $12.3M at end-4Q18 to $18.8M at end-1Q19– and stronger-than-modeled gross margin performance despite a lower revenue figure.”
According to TipRanks.com, Horn is a 3-star analyst with an average return of 2.2% and a 47.9% success rate. Horn covers the Consumer Goods sector, focusing on stocks such as Standard Motor Products, Methode Electronics, and Hickok Incorporated.
Currently, the analyst consensus on ExOne is a Moderate Buy with an average price target of $12.
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Tecnoglass Inc (TGLS)
In a report released today, Alex Rygiel from B.Riley FBR reiterated a Buy rating on Tecnoglass Inc, with a price target of $12. The company’s shares closed yesterday at $7.02, close to its 52-week low of $6.90.
Rygiel commented:
“On 5/9, Tecnoglass announced 1Q19 results which were modestly ahead of our estimates and those of consensus. The company continues to expand geographically within the U.S. commercial market and gain share within the residential single-family market in Florida. The aluminum and glass plant improvements remain on track and should drive better throughput and margins longer-term. We believe TGLS is well positioned to benefit from positive U.S. commercial construction trends, while leveraging its low cost vertically integrated manufacturing capacity in Colombia. We are modestly raising our estimates and reiterate our Buy rating and $12 price target.”
According to TipRanks.com, Rygiel is a 4-star analyst with an average return of 6.9% and a 55.8% success rate. Rygiel covers the Basic Materials sector, focusing on stocks such as Granite Construction Inc, Tutor Perini Corp, and Quanta Services.
Currently, the analyst consensus on Tecnoglass Inc is a Moderate Buy with an average price target of $11.
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