Companies in the Consumer Goods sector have received a lot of coverage today as analysts weigh in on Ferroglobe PLC (GSM), Universal Electronics (UEIC) and Applied Optoelectronics (AAOI).
Ferroglobe PLC (GSM)
In a report released today, Sarkis Sherbetchyan from B.Riley FBR reiterated a Buy rating on Ferroglobe PLC, with a price target of $4. The company’s shares opened today at $2.21, close to its 52-week low of $1.47.
Sherbetchyan wrote:
“Buy-rated Ferroglobe (GSM, $4 PT) will report 4Q18 (Dec.) results before the market opens on Tuesday, 2/26, and will host its earnings call at 9:00AM ET (dial-in: 877.293.5491; conference ID: 4581015). We forecast 4Q revenue/adj. EBITDA of $494M/$29M, compared to the consensus of $486M/$31M. We reason softer global industrial activity, inventory de-stocking, and weaker sentiment suggest continued pricing pressure for metals prices. We expect GSM to fight the near-term headwinds with material production cuts (e.g., ~103k MT annualized reduction in silicon metal production and ~112k MT in manganese-based alloys). We believe these actions could help rebalance and stabilize the market in the middle of 2019, assuming macroeconomic drivers do not deteriorate.”
According to TipRanks.com, Sherbetchyan is ranked #2582 out of 5194 analysts.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Ferroglobe PLC with a $3.35 average price target.
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Universal Electronics (UEIC)
In a report released today, Jeff Van Sinderen from B.Riley FBR reiterated a Buy rating on Universal Electronics, with a price target of $42. The company’s shares opened today at $28.97.
Van Sinderen said:
“Universal Electronics (UEIC, $42 PT) reported 1Q18 adj. EBITDA/EPS that were roughly in line (the latter within guidance), despite revenues below expectations. Gross margin improved, but the ongoing shift of a major portion of production from China to Mexico (triggered by tariffs, but beneficial to logistics/shipping, with a backdrop of waning benefits to manufacture so much in China) led to some delays getting product out the door. Mexican production should be normalized in 2H. Of critical importance, demand for UEIC products has begun to increase meaningfully, as next-gen programs are ramping deployment. Additionally, revenue from home automation/security contributed ~$130M in FY18 (~30% growth) and is slated to be the fastest- growing segment the foreseeable future and Nevo Butler is ahead for 2020.”
According to TipRanks.com, Sinderen is ranked #4309 out of 5194 analysts.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Universal Electronics with a $49 average price target, which is a 69.1% upside from current levels. In a report released today, Sidoti also maintained a Buy rating on the stock with a $49 price target.
Applied Optoelectronics (AAOI)
B.Riley FBR analyst Dave Kang maintained a Hold rating on Applied Optoelectronics today and set a price target of $12.50. The company’s shares opened today at $13, close to its 52-week low of $12.90.
Kang commented:
“Optoelectronics (AAOI) reported 4Q/1Q print/outlook below expectations driven by capacity issues along with an inventory related near-term slowdown which echoes a similar tone to peers in the datacom sector. 4Q revenue of $58.9M was below our/consensus estimates of $59.8M/$60.2M. Gross margin of 24.7% (vs. guidance of 30%-31%) was pressured by the incremental costs associated with additional testing to remedy the laser quality issues; 4Q appears to be the bottom for GM. Lower opex led to EPS of ($0.02), ahead of our/consensus of ($0.05)/($0.04). Management was also cautious around datacom trends in 1H19, and indicated that inventory had built up in at customers, prompting 1Q guidance below our/consensus estimates.”
According to TipRanks.com, Kang is a 5-star analyst with an average return of 18.2% and a 62.0% success rate. Kang covers the Consumer Goods sector, focusing on stocks such as Acacia Communications, Luna Innovations Inc, and Lumentum Holdings.
Currently, the analyst consensus on Applied Optoelectronics is a Hold with an average price target of $15.70, representing a 20.8% upside. In a report released today, Piper Jaffray also reiterated a Hold rating on the stock with a $12 price target.
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