Analysts have been eager to weigh in on the Consumer Goods sector with new ratings on Kratos Defense (KTOS), Infinera (INFN) and Kemet Corp (KEM).
Kratos Defense (KTOS)
B.Riley FBR analyst Mike Crawford reiterated a Buy rating on Kratos Defense today and set a price target of $20. The company’s shares closed yesterday at $16.01.
Crawford observed:
“Buy-rated Kratos (KTOS, $20 PT) flew past 1Q19 projections, dropping a $160M revenue/ $17.5M EBITDA print, vs. consensus $153M/$11.0M. Additionally, 2Q guidance of $175M- $185M revenue and $16M-$18M EBITDA compares favorably with prior consensus $176M/ $16.8M, while we further believe the company is being conservative in just maintaining full year guidance, including $71M-$77M EBITDA in 2019. We lift our projections across the board through FY21, including new FY19 projections of $742M revenue and an above- guidance $81M EBITDA, supplanting our prior $727M/$74M estimates.”
According to TipRanks.com, Crawford is a 4-star analyst with an average return of 7.7% and a 57.1% success rate. Crawford covers the Consumer Goods sector, focusing on stocks such as Finjan Holdings, Silicon Motion, and Ducommun Inc.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Kratos Defense with a $19.80 average price target.
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Infinera (INFN)
In a report released today, Dave Kang from B.Riley FBR maintained a Hold rating on Infinera, with a price target of $4.75. The company’s shares closed yesterday at $4.42, close to its 52-week low of $3.54.
Kang commented:
“Infinera (INFN) reported 1Q miss driven by a single major Asian deployment that was pushed out. The company’s 2Q revenue outlook of $300M was also below consensus of $337M. Nevertheless, management was upbeat on the momentum in bookings and order backlog driven by new products (hybrid merchant DSP model) and multiple wins, including from a major NA ICP . Due to the slower start to 2019, the company lowered the 2019 sales outlook by $100M to $1.3B, while maintaining the prior target of profitability by 4Q19. We lower our 2019 revenue/EPS estimates from $1.38B/$(0.57) to $1.30B/$(0.59). Our PT declines from $5.25 to $4.75 based on 0.7x 2019 revenue minus net debt; remain Neutral.”
According to TipRanks.com, Kang is a 5-star analyst with an average return of 20.5% and a 66.0% success rate. Kang covers the Consumer Goods sector, focusing on stocks such as Applied Optoelectronics, Acacia Communications, and Luna Innovations Inc.
Infinera has an analyst consensus of Moderate Buy, with a price target consensus of $6.57.
Kemet Corp (KEM)
In a report released today, Craig Ellis from B.Riley FBR maintained a Buy rating on Kemet Corp, with a price target of $24. The company’s shares closed yesterday at $17.77, close to its 52-week low of $15.55.
Ellis noted:
“KEM reports 1Q19 results and holds a CC on 5/16 at 9:00am ET. In conjunction, we transfer coverage from Josh Nichols, retain a Buy rating, CY19&20 estimates, and $24 PT for the high quality capacitor leader. The backdrop is an electronics industry cyclical correction, which has pressured many suppliers including Taiwanese capacitor companies and a slew of chip makers, though thus far KEM’s remained nicely above the fray, helped by tight underlying supply dynamics. Our checks, analysis, and view of laterals from IFNNY , NXPI, ROG, TXN, ROG and others suggests KEM could continue to fare comparatively well, helped by out-sized and early 5G infrastructure exposure where content is surging higher and unit demand is strong.”
According to TipRanks.com, Ellis is a top 100 analyst with an average return of 16.4% and a 63.0% success rate. Ellis covers the Consumer Goods sector, focusing on stocks such as Axcelis Technologies, Rudolph Technologies, and Skyworks Solutions.
The word on The Street in general, suggests a Hold analyst consensus rating for Kemet Corp.
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