Analysts Offer Insights on Consumer Goods Companies: Kratos Defense (KTOS) and Tri Pointe (TPH)


There’s a lot to be optimistic about in the Consumer Goods sector as 2 analysts just weighed in on Kratos Defense (KTOS) and Tri Pointe (TPH) with bullish sentiments.

Kratos Defense (KTOS)

B.Riley FBR analyst Mike Crawford maintained a Buy rating on Kratos Defense today and set a price target of $26. The company’s shares closed yesterday at $24.54, close to its 52-week high of $24.99.

Crawford wrote:

“Buy-rated Kratos (KTOS, $26 PT) reports 2Q19 results after market close on and will hold its call at 5:00pm ET (Dial-in # 3887333). We model $180M revenue and $17.5M EBITDA for the period, slightly above a $179M/$16.7M consensus. We also model $742M revenue and $81M EBITDA for FY19, remaining higher than a $741M/$76M consensus as we believe potential hypersonics-related and other awards create an upside bias to what we see as conservative guidance that includes $71M-$77M EBITDA for the year. For example, KTOS hopes to be under contract by the end of 3Q with partner Corvid Technologies, which on March 4 won a $223M FFP contract to deliver exo-atmospheric sub-orbital flight vehicles primarily supporting the Navy.”

According to TipRanks.com, Crawford is a 4-star analyst with an average return of 6.9% and a 55.0% success rate. Crawford covers the Consumer Goods sector, focusing on stocks such as Finjan Holdings, Ducommun Inc, and PCTEL Inc.

Currently, the analyst consensus on Kratos Defense is a Moderate Buy with an average price target of $25.40, which is a 3.5% upside from current levels. In a report released today, Canaccord Genuity also reiterated a Buy rating on the stock with a $28 price target.

See today’s analyst top recommended stocks >>

Tri Pointe (TPH)

B.Riley FBR analyst Alex Rygiel reiterated a Buy rating on Tri Pointe today and set a price target of $15. The company’s shares closed yesterday at $13.38.

Rygiel commented:

“TRI Pointe Group, Inc. (TPH) hosted a conference call (7/25) to discuss 2Q19 results that were ahead of expectations. In addition, management reiterated previous full-year guidance. The highlights in the quarter include sales and EPS that beat our and consensus estimates and new orders +11% year-over-year following four quarters of negative year-over-year growth. Home buyers appear to be returning to the market, which bodes well for continued growth in 2H19. We reiterate our Buy rating and price target of $15. However, we note that 2H guidance for home builder gross margin is a significant increase from 1H19 due to community mix, and as such, we believe there is an increased degree of risk relative to other home builders. With that said, the mix shift could be a catalyst to upside to our estimates in 2020.”

According to TipRanks.com, Rygiel is a 4-star analyst with an average return of 6.5% and a 58.7% success rate. Rygiel covers the Basic Materials sector, focusing on stocks such as Granite Construction Inc, Tutor Perini Corp, and Quanta Services.

The word on The Street in general, suggests a Hold analyst consensus rating for Tri Pointe.

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