H.C. Wainwright analyst Amit Dayal maintained a Buy rating on Quest Resource (QRHC) today and set a price target of $4. The company’s shares closed yesterday at $1.77.
Dayal said:
“We believe 4Q18 results are reflective of the strategic changes undertaken in the business during the last 18 months that are now showing profitability improvements on roughly 25% lower revenue base. Going forward, management is targeting 10-15% annual revenue growth driven by: (1) sales expansion within existing customers; (2) new customer acquisition; and (3) new service launches. Though gross margins for 4Q18 were 17.5% vs. our expectations of 15.8%, management expects quarterly variance in margins, with low to mid- teens as the normal range. Interestingly, gross margin improvements have come from better procurement practices and a revenue mix that has higher value added services than from any increases in pricing. We expect the restructured sales force to drive growth in 2019.”
According to TipRanks.com, Dayal is ranked 0 out of 5 stars with an average return of -7.0% and a 43.6% success rate. Dayal covers the Industrial Goods sector, focusing on stocks such as Ballard Power Systems, Capstone Turbine Corp, and Orion Energy Systems.
Currently, the analyst consensus on Quest Resource is a Moderate Buy with an average price target of $4.
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The company has a one-year high of $3.10 and a one-year low of $1.26. Currently, Quest Resource has an average volume of 12.59K.
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Quest Resource Holding Corp. engages in the provision of reuse, recycling, and disposal services. It focuses on the waste streams and recyclables from big box, food chain, and other retailers; automotive repair, maintenance, and tire operations; truck and bus fleet operators; manufacturing plants; multi-family and commercial properties; and construction and demolition projects. The company was founded by Jeffrey I. Rassas on August 22, 2008 and is headquartered in The Colony, TX.
