B.Riley FBR Sticks to Their Buy Rating for Mts Systems Corp

In a report released yesterday, Liam Burke from B.Riley FBR maintained a Buy rating on Mts Systems Corp (NASDAQ: MTSC), with a price target of $70. The company’s shares opened today at $49.40.

Burke noted:

“The ground vehicle test business remains challenging but with a stabilization in the business and the increased contribution from its faster growing, higher margin sensor business, MTS Systems (Buy, $70 PT) should generate steady operating margin growth with mid-to-high single- digit revenue growth. Although expectations for test are back-half loaded, the test segment is on track to contribute higher, more profitable revenue growth as higher margin materials test and service contribute a higher percentage of overall test revenue. Sensors continues to execute on a solid business model and legacy MTS sensors has seen a strong rebound. Sensors segment generates gross margins in the area of 50% and posts high single-digit revenue growth.”

According to TipRanks.com, Burke is a 2-star analyst with an average return of 0.2% and a 46.9% success rate. Burke covers the Industrial Goods sector, focusing on stocks such as Lincoln Electric Holdings, Carlisle Companies Inc, and Enpro Industries.

Mts Systems Corp has an analyst consensus of Moderate Buy, with a price target consensus of $70.

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Mts Systems Corp’s market cap is currently $873.6M and has a P/E ratio of 16.37. The company has a Price to Book ratio of 1.85.

Based on the recent corporate insider activity of 44 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 MTSC in relation to earlier this year.

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MTS Systems Corp. is a supplier of test systems and sensors. The firm provides hardware and software solutions to accelerate and improve the design, development, and manufacturing processes, which are used for determining the mechanical behavior of materials, products, and structures. It operates through Test and Sensors segments.