There’s a lot to be optimistic about in the Services sector as 3 analysts just weighed in on Fusion Connect Inc (FSNN), KushCo Holdings Inc (KSHB) and PRGX Global (PRGX) with bullish sentiments.
Fusion Connect Inc (FSNN)
In a report released today, Josh Nichols from B.Riley FBR maintained a Buy rating on Fusion Connect Inc, with a price target of $9.75. The company’s shares opened today at $1.79, close to its 52-week low of $1.38.
Nichols noted:
“PT) reports 4Q results on Thursday, 3/14, call at 4:30pm ET (Dial-in: We model 4Q revenue of $143M and EBITDA of $32.6M (22.8% margin) relative to consensus of $143M and $31.5M, respectively. Following the acquisition of Fusion has been focused on stabilizing the legacy Birch customer base and extracting synergies to improve scale and transition the business to sustainable FCF profitability. Management has made significant progress on several fronts including increasing bookings (3Q MRR bookings of $2.1M were up Q/Q from $2.0M), reducing monthly churn (down from 1.5% in 2Q and 2.3% in 3Q17 to 1.3% in 3Q18), and extracting synergies ($27M in annualized run-rate cost synergies exiting 3Q).”
According to TipRanks.com, Nichols is a 4-star analyst with an average return of 12.7% and a 40.2% success rate. Nichols covers the Consumer Goods sector, focusing on stocks such as Adesto Technologies Corp, Pointer Telocation Ltd, and Immersion Corp.
The the analyst consensus on Fusion Connect Inc is currently a Hold rating.
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KushCo Holdings Inc (KSHB)
Northland Securities analyst Paul Penney assigned a Buy rating to KushCo Holdings Inc today and set a price target of $8.75. The company’s shares opened today at $5.73.
Penney noted:
“We are proactively raising our forward looking revenue estimates (to street highs) in 2019 and 2020 to $130.4M and $215.1M, respectively, to account for our increased confidence / conviction in KSHB’s ability to drive accelerated relevance / business with some of the largest US cannabis MSO’s. As such, we continue to believe KSHB should be a core holding for all small cap growth / cannabis centric investors.”
According to TipRanks.com, Penney is a 3-star analyst with an average return of 5.1% and a 48.6% success rate. Penney covers the Technology sector, focusing on stocks such as Iridium Communications, ImageWare Systems Inc, and Boingo Wireless Inc.
KushCo Holdings Inc has an analyst consensus of Moderate Buy, with a price target consensus of $8.75, representing a 52.8% upside. In a report issued on February 21, Seaport Global also initiated coverage with a Buy rating on the stock with a $10 price target.
PRGX Global (PRGX)
In a report released today, Zach Cummins from B.Riley FBR maintained a Buy rating on PRGX Global, with a price target of $12. The company’s shares opened today at $8.96.
Cummins said:
“PRGX Global (PRGX) reported 4Q18 results after the market close on Thursday, March 7. Revenues and adjusted EBITDA fell short of expectations as several million dollars of claims revenue that was expected to be realized in 4Q was pushed into FY19. On a positive note, management anticipates that most of these claims will be realized in 1Q with the remainder to be realized in FY19. Although revenues from all three segments were below our model, we note that the delayed claims had the biggest impact on the RAS-Americas (“Americas”) segment, which accounted for biggest portion of downside versus our projection. Gross margin was above our assumption but operating expenses were slightly higher than projected.”
According to TipRanks.com, Cummins is a 1-star analyst with an average return of -6.1% and a 45.5% success rate. Cummins covers the Technology sector, focusing on stocks such as ServiceSource International Inc, ChannelAdvisor, and Computer Task.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for PRGX Global with a $13 average price target, which is a 45.1% upside from current levels. In a report issued on March 5, Barrington also maintained a Buy rating on the stock with a $13 price target.
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