Analysts Offer Insights on Consumer Goods Companies: Verso Corp (NYSE: VRS), Adesto Technologies Corp (NASDAQ: IOTS) and Plug Power (NASDAQ: PLUG)

There’s a lot to be optimistic about in the Consumer Goods sector as 3 analysts just weighed in on Verso Corp (NYSE: VRS), Adesto Technologies Corp (NASDAQ: IOTS) and Plug Power (NASDAQ: PLUG) with bullish sentiments.

Verso Corp (NYSE: VRS)

In a report released today, Jeff Van Sinderen from B.Riley FBR reiterated a Buy rating on Verso Corp (NYSE: VRS), with a price target of $26. The company’s shares opened today at $18.38, close to its 52-week high of $19.75.

Van Sinderen noted:

“Buy-rated Verso Corp. (VRS, $26 PT) reported 1Q sales and adj. EBITDA above our estimates. The company kicked off 2018 in much better shape than a year ago, delivering 1Q sales +4% despite volume declines, and adj. EBITDA grew +58% Y/Y despite some unusual challenges. VRS continues to lead in graphic papers, which have experienced a significantly better operating environment of late, leading to improved profitability and cash flow. Results would have come in even better than our expectations, if not for a $10M impact from unusual operational issues. We continue to expect 2018 to be 2H weighted, particularly from a profitability standpoint, as the company is facing incremental major maintenance costs in 2Q, in addition to ongoing shipping headwinds and other general macro inflationary pressure input costs.”

According to TipRanks.com, Sinderen is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -3.5% and a 45.3% success rate. Sinderen covers the Services sector, focusing on stocks such as Tilly’s Inc, Kirkland’s, and Zumiez Inc.

Verso Corp has an analyst consensus of Moderate Buy, with a price target consensus of $24.

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Adesto Technologies Corp (NASDAQ: IOTS)

B.Riley FBR analyst Josh Nichols reiterated a Buy rating on Adesto Technologies Corp (NASDAQ: IOTS) today and set a price target of $11. The company’s shares opened today at $8.75.

Nichols noted:

“Buy-rated Adesto Technologies (IOTS) reported 1Q18 results, after the market close, on Wednesday, 5/9. Revenue of $15.3M was up an impressive 35.3% Y/Y during the seasonally slower March quarter and came in ahead of guidance ($14.7M-$15.0M), as well as ahead of our and consensus’ estimates of $14.8M and $14.9M. The gross margin of 46.9% was in line with management’s long-term target of 45%-50%. EBITDA of $0.3M outpaced our and consensus’ estimate of $(0.1M); pro forma EPS of $(0.02) surpassed our and consensus’ estimates of $(0.04) and $(0.03), respectively. During the quarter, IOTS continued to experience accelerated design-win momentum, achieving a record 120+ wins, largely attributable to success in the high-margin industrial vertical.”

According to TipRanks.com, Nichols is a 5-star analyst with an average return of 27.7% and a 54.5% success rate. Nichols covers the Consumer Goods sector, focusing on stocks such as Pointer Telocation Ltd, Immersion Corp, and Horizon Global.

Currently, the analyst consensus on Adesto Technologies Corp is Strong Buy and the average price target is $10.83, representing a 23.8% upside.

In a report released today, Needham also maintained a Buy rating on the stock with a $12 price target.

Plug Power (NASDAQ: PLUG)

In a report released today, Carter Driscoll from B.Riley FBR reiterated a Buy rating on Plug Power (NASDAQ: PLUG), with a price target of $3.50. The company’s shares opened today at $2.

Driscoll wrote:

“Plug Power (PLUG) delivered a 1Q beat with higher-than-expected equipment sales, driven by an early ramp for a new customer, a major U.S. food distributor. As expected, the ITC extension is accelerating existing and new customer engagements, especially smaller sites (sub-50 forklifts) and slowly providing a boost to margins and cash flow. We contend the larger financial impact occurs in 2019 as customer engagements are typically multi-quarter. We saw some positive cash flow effects manifest from last year’s adjustment to its WalMart relationship installations as the EBITDA financing cash margin for new installations hit $4.9M. As WalMart and Amazon ramp 2H18 deployments, we see PLUG reaching EBITDAS breakeven when taking this cash margin into consideration, one PLUG’s top 2018 goals.”

According to TipRanks.com, Driscoll ‘s ranking currently consits of no stars on a 0-5 ranking scale, with an average return of -7.6% and a 32.3% success rate. Driscoll covers the Consumer Goods sector, focusing on stocks such as SolarEdge Technologies, Pacific Ethanol, and Enphase Energy.

Currently, the analyst consensus on Plug Power is Strong Buy and the average price target is $4.50, representing a 125.0% upside.

In a report released today, H.C. Wainwright also maintained a Buy rating on the stock with a $4 price target.

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