After Stephens and Stifel Nicolaus gave Brooks Automation (NASDAQ: BRKS) a Buy rating last month, the company received another Buy, this time from B.Riley FBR. Analyst Craig Ellis reiterated a Buy rating on Brooks Automation today and set a price target of $40. The company’s shares opened today at $35.62.
Ellis commented:
“We have not spoken to management ahead of 8/28’s 8:00 a.m. ET call, but we believe Semi will now consist of the faster-growing Patterning (Etch and Control businesses with their above-industry average multiyear growth potential, plus a strong services business. At segment average OMs, we peg Cryo’s annual EPS at $0.35–$0.45 or so, but with a $0.10 interest-income offset until proceeds potentially redeploy to accretive M&A, where BRKS’s track record is well proven, or share repurchase. Thus, there could be a $0.25–$0.35 annual EPS dip in early 2019 before a positive EPS reset later in 2019, a risk to navigate. Post- deal, Semi mix falls to 65% of total, while Life Sciences rises to 35%, but with enhanced overall growth characteristics.”
According to TipRanks.com, Ellis is a top 25 analyst with an average return of 32.9% and a 73.4% success rate. Ellis covers the Consumer Goods sector, focusing on stocks such as Sequans Communications S A, Axcelis Technologies, and Silicon Laboratories.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Brooks Automation with a $37.50 average price target.
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Based on Brooks Automation’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $22.72 million. In comparison, last year the company had a net profit of $17.35 million.
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Brooks Automation, Inc. engages in the provision of automation and cryogenic solutions for multiple markets, including semiconductor capital equipment and life science biological sample management and storage. It operates through the Brooks Semiconductor Solutions Group; and Brooks Life Science Systems segments.
