B.Riley FBR analyst Christopher Van Horn reiterated a Buy rating on Ceco Environmental (CECE) today and set a price target of $9.50. The company’s shares closed yesterday at $8.
Van Horn observed:
“We continue to be positive on CECO Environmental (CECE—Buy, $9.50 PT) given the company’s position within its energy and industrial markets. After the company reported results that were better on the top- and bottom-line, we are essentially maintaining our model which we think reflects the opportunity set for the company. We are forecasting continued revenue growth in both 2019 and 2020 with adjusted EBITDA reaching $36M in as early as the end of this year. This is feasible given this quarters impressive adjusted EBITDA of $8.5M vs. our estimate of $5.3M. We are maintaining our 2020 adjusted EBITDA estimate of $36M but recognize this could be conservative. We think the company’s end market exposure and pipeline for new business remain a primary driver of our model.”
According to TipRanks.com, Horn is a 3-star analyst with an average return of 2.3% and a 49.2% success rate. Horn covers the Consumer Goods sector, focusing on stocks such as Standard Motor Products, Methode Electronics, and Hickok Incorporated.
Currently, the analyst consensus on Ceco Environmental is a Strong Buy with an average price target of $9.50, a 18.8% upside from current levels. In a report released yesterday, Maxim Group also maintained a Buy rating on the stock with a $10 price target.
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Based on Ceco Environmental’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $931K. In comparison, last year the company had a net profit of $5.76 million.
Based on the recent corporate insider activity of 21 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CECE in relation to earlier this year.
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CECO Environmental Corp. engages in the provision of engineering technology and solutions. It offers services in the field of environment, energy, fluid handling, and filtration. The firm operates through the following segments: Energy Solutions, Industrial Solutions, Fluid Handling Solutions, and Corporate and Other.
