Analysts have been eager to weigh in on the Consumer Goods sector with new ratings on Marvell (MRVL), Taylor Morrison (TMHC) and Fabrinet (FN).
Marvell (MRVL)
In a report released yesterday, Craig Ellis from B.Riley FBR maintained a Buy rating on Marvell, with a price target of $30. The company’s shares closed yesterday at $24.43, close to its 52-week high of $25.74.
Ellis said:
“Monday pre-mkt, 5/6, MRVL announced the joint board approved acquisition of Ethernet specialist AQ for $13.25 per share or $452M in EV. Funding is combo of balance sheet cash and a credit revolver at a 4.0x P/S valuation. In our view, strategic logic is sound, with complementary Enterprise networking offerings bolstering MRVL’s LT growth potential. We see four takeaways: 1) AQ’s volatile sales and customer concentration raise some concerns, but its small size mitigates risk of Cavium repeat. 2) Immediately EPS accretion is expected, and we believe $40M in targeted one-year synergies is impressive; we see <$0.005 and $0.015 in respective initial quarter and four quarter accretion."
According to TipRanks.com, Ellis is a top 100 analyst with an average return of 17.8% and a 65.8% success rate. Ellis covers the Consumer Goods sector, focusing on stocks such as Rudolph Technologies, Skyworks Solutions, and Brooks Automation.
Currently, the analyst consensus on Marvell is a Strong Buy with an average price target of $25.41, a 4.0% upside from current levels. In a report issued on April 22, Barclays also maintained a Buy rating on the stock with a $30 price target.
See today’s analyst top recommended stocks >>
Taylor Morrison (TMHC)
In a report released yesterday, Alex Rygiel from B.Riley FBR maintained a Hold rating on Taylor Morrison, with a price target of $22. The company’s shares closed yesterday at $20.70.
Rygiel wrote:
“We are modestly raising our estimates and raising our price target from $21 to $22 following better than expected 1Q19 results. Morrison announced 1Q19 results, highlighting increased traffic and demand across all of its geographies and consumer groups during the quarter following an industry-wide slowdown in 4Q18. These positive trends have continued into 2Q, giving management enough visibility to provide full year 2019 guidance. We are raising our price target from $21 to $22 on stronger than expected 1Q19 results and 2019 guidance. However, given the run up in share price, we maintain our Neutral rating at this time, but with a more positive bias.”
According to TipRanks.com, Rygiel is a 5-star analyst with an average return of 8.2% and a 60.8% success rate. Rygiel covers the Basic Materials sector, focusing on stocks such as Granite Construction Inc, Tutor Perini Corp, and Quanta Services.
Taylor Morrison has an analyst consensus of Hold, with a price target consensus of $21.17, representing a 2.3% upside. In a report issued on May 2, Deutsche Bank also maintained a Hold rating on the stock with a $21 price target.
Fabrinet (FN)
In a report released today, Dave Kang from B.Riley FBR maintained a Hold rating on Fabrinet, with a price target of $56. The company’s shares closed yesterday at $60.09, close to its 52-week high of $62.31.
Kang said:
“Driven by the strength in Telecom, Fabrinet’s (FN) F3Q sales/EPS of $399M/$0.92 were above consensus of $390M/$0.89. Within Opcomm, Telecom revenue increased 5% Q/Q while Datacom declined 18% Q/Q. Non-Opcomm revenue increased 3% Q/Q. One of the highlights was that Infinera (INFN) will transfer production of Coriant products to FN’s Thailand facility. In F3Q, GM increased to 12.1% form 11.6% in F2Q, as component shortages eased during the quarter. The company provided F4Q sales/EPS outlook of $396M-$404M/$0.92-$0.96, compared to consensus of $404M/$0.94. One notable item was that Telecom is expected to be flat Q/Q in F4Q, due to lack of testing capacity. We raise our FY19/FY20 EPS estimates from $3.71/$3.93 to $3.74/$3.95. We also increase our PT from $55 to $56, which is based on an unchanged P/E multiple of 12x our FY20 EPS estimate plus net cash. Maintain Neutral based on valuation.”
According to TipRanks.com, Kang is a 5-star analyst with an average return of 20.9% and a 66.8% success rate. Kang covers the Consumer Goods sector, focusing on stocks such as Applied Optoelectronics, Acacia Communications, and Luna Innovations Inc.
Currently, the analyst consensus on Fabrinet is a Moderate Buy with an average price target of $59.50, which is a -1.0% downside from current levels. In a report released today, Northland Securities also maintained a Hold rating on the stock with a $50 price target.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
