Analysts Offer Insights on Consumer Goods Companies: ON Semi (ON), Dorman Products (DORM) and Telenav (TNAV)


Companies in the Consumer Goods sector have received a lot of coverage today as analysts weigh in on ON Semi (ON), Dorman Products (DORM) and Telenav (TNAV).

ON Semi (ON)

In a report released yesterday, Craig Ellis from B.Riley FBR reiterated a Buy rating on ON Semi, with a price target of $30. The company’s shares opened today at $22.88.

Ellis observed:

“Following ON’s 4/28 release with an EPS beat but lower outlook versus the Street (4/29’s “ Lower…”), our post-CC takeaways leave us a little more cautious on 2Q’s Q/Q growth than we had previewed, but more bullish on six meaningful catalysts from there to 4Q20. To recap, 2Q revenues are hurt by China Industrial and global Auto weakness, as well as distribution and OEM inventory burn, though in response robust COGS cost execution and classic opex belt-tightening are shielding EPS. However, mgmt. believes recently improved distributor resales augur well for 2H growth, a point which has strong peer support. Overall, our estimates are lower in 1H20, but with slightly and more meaningfully stronger 2H19 and 2020 growth.”

According to TipRanks.com, Ellis is a top 100 analyst with an average return of 17.7% and a 66.3% success rate. Ellis covers the Consumer Goods sector, focusing on stocks such as Axcelis Technologies, Skyworks Solutions, and Brooks Automation.

Currently, the analyst consensus on ON Semi is a Moderate Buy with an average price target of $25.85, implying a 13.0% upside from current levels. In a report issued on April 22, Needham also maintained a Buy rating on the stock with a $27 price target.

See today’s analyst top recommended stocks >>

Dorman Products (DORM)

B.Riley FBR analyst Christopher Van Horn reiterated a Hold rating on Dorman Products today and set a price target of $70. The company’s shares opened today at $84.36.

Van Horn noted:

“Dorman Products (DORM) reported 1Q19 results with sales, adjusted EBITDA, and EPS that were lower than we anticipated. The company reiterated its guidance of 6-10% top line growth for 2019 with adjusted EPS in the range of $4.37-$4.53. The company’s revenue growth of 7% was lower than our model of 10% with 2% of growth coming from acquisitions. This drove some of the miss on EPS as did adjusted gross margins which came in less-than-expected at 36% vs. our estimate of 37.6%. First-quarter adj. EPS were $0.79 vs. our $1.04 and the Street’s $1.10. Industry environment tailwinds helped 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 3-star analyst with an average return of 2.5% and a 48.7% success rate. Horn covers the Consumer Goods sector, focusing on stocks such as Methode Electronics, Hickok Incorporated, and Cooper Tire Rubber.

The word on The Street in general, suggests a Hold analyst consensus rating for Dorman Products with a $70 average price target, a -17.0% downside from current levels. In a report issued on April 24, Barrington also maintained a Hold rating on the stock.

Telenav (TNAV)

In a report released today, Josh Nichols from B.Riley FBR assigned a Buy rating to Telenav, with a price target of $9.50. The company’s shares opened today at $6.29.

Nichols noted:

“Buy-rated Telenav (TNAV $9.50 PT), our Alpha Generator pick, reports F3Q19 (Mar) results, after the close, on Thursday, 5/9 (Dial in 5:30PM ID: 5019653). We model F3Q billings, revenue, and EBITDA of $63M, $51M, and $(5.6M), in line with management’s guidance and consensus. TNAV turned the corner in F2Q19 (Dec) with the transition to sustainable positive cash generation (adj. CFO was 4% of billings), and we expect its $86M cash balance grow as the GM rollout continues. FCF generation of $4.6M in F2Q19 also marked a key milestone towards the company’s goal to deliver a profitable fiscal 2019, and management authorized a $20M share repurchase program, which we believe reaffirms that the business has indeed turned the corner.”

According to TipRanks.com, Nichols is a 4-star analyst with an average return of 11.3% and a 42.9% 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 Telenav is a Moderate Buy with an average price target of $9.50.

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