Twin Disc (TWIN) Gets a Buy Rating from Oppenheimer


Oppenheimer analyst Noah Kaye maintained a Buy rating on Twin Disc (TWIN) today and set a price target of $20. The company’s shares opened today at $17.78.

Kaye said:

“TWIN beat consensus F2Q19 adj. EPS by a penny on 450bps EBIT margin expansion y/y and 13% organic growth. While backlog dipped 6% sequentially, we view this in part as TWIN prudently managing to optimize oil & gas demand forecasting and inventory levels amid supply chain tightness, and see retrofit/ aftermarket as a share gain opportunity. Looking ahead, manufacturing expansion and footprint reconfiguration could support a $500M sales runrate and 200-300bps higher margins through the cycle, per management’s estimates. Bullish commentary on Veth customer interest and product development acceleration was encouraging. We adjust estimates for F2Q results and maintain our $20 price target.”

According to TipRanks.com, Kaye is a 4-star analyst with an average return of 4.9% and a 56.2% success rate. Kaye covers the Industrial Goods sector, focusing on stocks such as Rockwell Automation Inc, Caterpillar, and BorgWarner.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Twin Disc with a $20 average price target.

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Based on Twin Disc’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $2.81 million. In comparison, last year the company had a GAAP net loss of $4.11 million.

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Twin Disc, Inc. engages in manufacturing and sale of marine and off-highway power transmission equipment. It operates through the Manufacturing and Distribution segments.

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