Analysts Offer Insights on Consumer Goods Companies: ON Semi (ON) and Horizon Global (HZN)


Companies in the Consumer Goods sector have received a lot of coverage today as analysts weigh in on ON Semi (ON) and Horizon Global (HZN).

ON Semi (ON)

B.Riley FBR analyst Craig Ellis maintained a Buy rating on ON Semi on March 8 and set a price target of $27. The company’s shares opened today at $22.42.

Ellis commented:

“We are attending ON’s Analyst Day, which has just begun. Presentation materials reveal an impressive C22 target financial model, in our view, with $7.1B in revenue, 43.0% gross margin, 22.0% operating margin, and $3.00 in EPS with $1.2B in FCF. These targets exceed our previewed expectation, which, on a headline basis, was $6.5B/$2.25-$2.50 (C21). Overall, we are quite encouraged with these parameters and look for detailed strategic, business unit, and financial presentations from ON’s executive team to fill in key initiatives and assumptions. In our view, the significant expansion in long-term EPS supports a positive stock stance on the inexpensively priced shares, and if management can deliver on the gross margin targets, material valuation multiple expansion could be a long-term tailwind to stock appreciation.”

According to TipRanks.com, Ellis is a 5-star analyst with an average return of 15.7% and a 60.9% success rate. Ellis covers the Consumer Goods sector, focusing on stocks such as Axcelis Technologies, Rudolph Technologies, and Silicon Laboratories.

ON Semi has an analyst consensus of Strong Buy, with a price target consensus of $26, a 16.0% upside from current levels. In a report issued on February 21, Cowen & Co. also initiated coverage with a Buy rating on the stock with a $29 price target.

See today’s analyst top recommended stocks >>

Horizon Global (HZN)

In a report released today, Josh Nichols from B.Riley FBR maintained a Hold rating on Horizon Global, with a price target of $3. The company’s shares opened today at $2.50, close to its 52-week low of $1.34.

Nichols noted:

“PT) will report 4Q results, before the market open, 3/18 (Dial in 8:30AM ID: 7447016). Recall, we published a Flash note after the company’s 8-K filing on 2/26, “Seeks 4Q18 results and 2019 We reduce our 4Q revenue and EBITDA projections from $185M and $7.5M to $172M and $(8.0M), respectively, given the disappointing preliminary 4Q results. The headwinds in Europe-Africa and seasonally slow 4Q have put significant strain on the company’s liquidity, and the company was likely not in compliance with its maximum net leverage ratio covenant of 7.0x and would need to seek an amendment for covenant relief.”

According to TipRanks.com, Nichols is a 4-star analyst with an average return of 12.8% and a 42.4% success rate. Nichols covers the Consumer Goods sector, focusing on stocks such as Adesto Technologies Corp, Pointer Telocation Ltd, and Immersion Corp.

Currently, the analyst consensus on Horizon Global is a Hold with an average price target of $3.

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