There’s a lot to be optimistic about in the Consumer Goods sector as 2 analysts just weighed in on Mts Systems Corp (NASDAQ:MTSC) and PCTEL Inc (NASDAQ:PCTI) with bullish sentiments.
Mts Systems Corp (MTSC)
B.Riley FBR analyst Liam Burke maintained a Buy rating on Mts Systems Corp on August 3 and set a price target of $70. The company’s shares opened today at $53.60.
Burke noted:
“Despite the current weakness in its ground vehicle test business, we see a favorable long- term outlook for MTS Systems (MTSC). The company continues to see order deferrals from its largest business but the demand for durability testing in new car models should reverse current negative order trends. Looking past ground vehicle test, the balance of the company’s businesses is seeing healthy growth. Materials test, aftermarket service and products, and sensors are all seeing healthy growth with positive underlying trends. The company generates strong free cash flow which, after dividend payments (the stock is yielding over 2%), the company will allocate cash to debt reduction, which would contribute to increasing ROIC. We are maintaining our Buy rating and $70 price target on MTSC shares.”
According to TipRanks.com, Burke is a 3-star analyst with an average return of 4.2% and a 57.7% success rate. Burke covers the Industrial Goods sector, focusing on stocks such as Standex International Corp, Lincoln Electric Holdings, and Carlisle Companies Inc.
Currently, the analyst consensus on Mts Systems Corp is a Moderate Buy with an average price target of $70.
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PCTEL Inc (PCTI)
B.Riley FBR analyst Mike Crawford maintained a Buy rating on PCTEL Inc today and set a price target of $8.50. The company’s shares opened today at $5.89.
Crawford noted:
“Buy-rated PCTEL (PCTI, $8.50 PT) reports 2Q18 results AMC on a conference call at 4:30pm ET (dial in: #47850740). We model revenue of $23.5M (at the midpoint of $23M-$24M guidance), EBITDA of $1.8M, and pro forma EPS of $0.05 (at the low end of $0.05-$0.07 guide). Our estimates are in line with consensus, comprising $23.5M in revenue, $1.7M in in pro forma EPS. Despite increasing rhetoric between the U.S. and China concerning a trade war (which likely would have an adverse impact on PCTI’s business) PCTI has been making significant progress as it prepares for the upcoming 5G rollouts, likely starting in earnest in 2019.”
According to TipRanks.com, Crawford is a 4-star analyst with an average return of 9.0% and a 58.0% success rate. Crawford covers the Consumer Goods sector, focusing on stocks such as Finjan Holdings, Kratos Defense, and Silicon Motion.
Currently, the analyst consensus on PCTEL Inc is a Moderate Buy with an average price target of $8.50.
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