In a report released today, Christopher Van Horn from B.Riley FBR maintained a Buy rating on Superior Industries International (SUP), with a price target of $11. The company’s shares opened today at $5.38, close to its 52-week low of $4.36.
Van Horn observed:
“We are lowering our price target to $11 around our fundamental belief that Superior Industries should trade at 6.1x FY2019 EBITDA with at attractive dividend yield of 6%+. Our thesis revolves around the company’s ability to manage a difficult top-line environment through better execution on the operating line. We are maintaining our Buy recommendation given that we think the company can improve their sales mix as program launches this year are likely on larger SUVs with higher priced wheels. The company grew its mix of wheels 19″ and above to 20% of revenue from 17% of revenue in 2017 which we think can continue into next year and beyond. The company is also taking share by adding capacity, specifically within Europe.”
According to TipRanks.com, Horn is a 4-star analyst with an average return of 3.2% and a 48.9% success rate. Horn covers the Consumer Goods sector, focusing on stocks such as Espey Mfg & Electronics, Methode Electronics, and Hickok Incorporated.
Superior Industries International has an analyst consensus of Moderate Buy, with a price target consensus of $10.67, implying a 98.3% upside from current levels. In a report released today, Barrington also assigned a Buy rating to the stock with a $15 price target.
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The company has a one-year high of $22.95 and a one-year low of $4.36. Currently, Superior Industries International has an average volume of 446K.
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Superior Industries International, Inc. engages in the design and manufacture of aluminum road wheels for passenger cars and light-duty vehicles. It offers its products to original equipment manufacturers for the automotive industry. The firm supplies cast aluminum wheels with wheel manufacturing operations in the United States and Mexico.
