Analysts have been eager to weigh in on the Consumer Goods sector with new ratings on Ferroglobe PLC (GSM), Dorman Products (DORM) and SMTC Corp (SMTX).
Ferroglobe PLC (GSM)
B.Riley FBR analyst Sarkis Sherbetchyan reiterated a Buy rating on Ferroglobe PLC yesterday and set a price target of $4. The company’s shares opened today at $2.42, close to its 52-week low of $1.47.
Sherbetchyan wrote:
“We are pleased with GSM’s ability to convert working capital to cash, and we expect management to continue to focus on cash conversion. We think current market dynamics suggest weak sentiment, and therefore reason pricing for GSM’s main products could linger in the near term. Given this backdrop, GSM is fighting headwinds with material production cuts in the silicon metal and manganese-based alloys segments. Meanwhile, we prefer management focus on optimizing the production base, operating costs, and continuing to de-lever the balance sheet. We plan to issue a full earnings review note after GSM’s earnings call.”
According to TipRanks.com, Sherbetchyan is ranked #2549 out of 5203 analysts.
Currently, the analyst consensus on Ferroglobe PLC is a Moderate Buy with an average price target of $3.35.
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Dorman Products (DORM)
In a report released today, Christopher Van Horn from B.Riley FBR maintained a Hold rating on Dorman Products, with a price target of $70. The company’s shares opened today at $80.90.
Van Horn noted:
“Dorman Products (DORM) reported 4Q18 results with sales, adjusted EBITDA, and EPS that were higher than we anticipated. However, the company’s 2019 guidance was lower than we anticipated, specifically on the margin line. The company’s revenue growth of 14% was higher than our model of 7.6% with 4% of growth coming from acquisitions. This drove most of the beat on EPS given that adjusted gross margins came in less-than-expected at 37.8% vs our estimate of 38.9%. Fourth-quarter adj. EPS were $1.10 vs. our $1.07 and the Street’s $1.09. Industry environment tailwinds impacted DORM during the quarter and should be fairly positive over the medium-term based on a favorable shift in the U.S. aftermarket sweet-spot vehicle population as well as destocking headwinds trailing off.”
According to TipRanks.com, Horn is a 4-star analyst with an average return of 4.4% and a 49.5% success rate. Horn covers the Consumer Goods sector, focusing on stocks such as Espey Mfg & Electronics, Methode Electronics, and Hickok Incorporated.
Currently, the analyst consensus on Dorman Products is a Hold with an average price target of $70, which is a -13.5% downside from current levels. In a report released today, Barrington also maintained a Hold rating on the stock.
SMTC Corp (SMTX)
B.Riley FBR analyst Mike Crawford maintained a Buy rating on SMTC Corp today and set a price target of $6. The company’s shares opened today at $4.73.
Crawford wrote:
“Buy-rated SMTC Corporation (SMTX, $6 PT) reports 4Q18 results after the close on 3/14 and will hold its conference call at 8:30AM ET on 3/15. Dial in at 877.317.6789. Based on SEC filings and upbeat public comments subsequent to our December 11, 2018, initiation report, “ SMTC Seizes EMS Scale with MCA Acquisition,” we believe business was strong through year end and that MC Assembly (MCA) integration is progressing to plan. Accordingly, we nudge our 4Q18 and FY19 revenue and EBITDA projections slightly higher into 4Q print, from $73M/ $3.3M and $387M/$25.7M to $74M/$3.5M and $391M/$26.2M, respectively.”
According to TipRanks.com, Crawford is a 5-star analyst with an average return of 8.7% and a 59.4% success rate. Crawford covers the Consumer Goods sector, focusing on stocks such as Kratos Defense, Silicon Motion, and Ducommun Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for SMTC Corp with a $7.50 average price target.
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