In a report released today, Christopher Van Horn from B.Riley FBR reiterated a Buy rating on Tower International (NYSE: TOWR), with a price target of $40. The company’s shares opened today at $28.10.
Van Horn noted:
“Tower International (TOWR) shares closed up 13.6% on October 29 vs. the the company reported above-expectations 3Q18 results that morning. While sales met our estimate, profitability was solid as adj. EBITDA margin came in a hair ahead and adj. EPS were modestly better than we expected. Yet our estimates were higher than consensus, which had retreated over the last two months as sentiment around TOWR shares—and around auto suppliers in general—declined. We discussed this industry dynamic in our 3Q18 auto earnings preview (October 17 report). So, TOWR came in well ahead of the Street as it benefited from its light truck-focused business mix in North America and significant new business launch activity continuing into the third quarter. The company’s North American sales were +20% Y/Y in 3Q.”
According to TipRanks.com, Horn is a 4-star analyst with an average return of 3.9% and a 49.5% success rate. Horn covers the Consumer Goods sector, focusing on stocks such as Motorcar Parts Of America, Standard Motor Products, and Methode Electronics.
Currently, the analyst consensus on Tower International is a Moderate Buy with an average price target of $36, which is a 28.1% upside from current levels. In a report released today, Roth Capital also reiterated a Buy rating on the stock with a $36 price target.
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Based on Tower International’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $22.58 million. In comparison, last year the company had a net profit of $14.93 million.
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Tower International, Inc. manufactures engineered structural metal components and assemblies primarily serving automotive original equipment manufacturers. It offers its automotive customers a broad product portfolio, supplying body-structure stampings, frame and other chassis structures as well as complex welded assemblies for small and large cars, crossovers, pickups and sport utility vehicles. It also operates through two geographical segments: North America and Europe. The company was founded in 1993 and is headquartered in Livonia, MI.
