There’s a lot to be optimistic about in the Consumer Goods sector as 3 analysts just weighed in on Brooks Automation (BRKS), Hanesbrands (HBI) and ID Systems (IDSY) with bullish sentiments.
Brooks Automation (BRKS)
B.Riley FBR analyst Craig Ellis maintained a Buy rating on Brooks Automation today and set a price target of $47. The company’s shares closed yesterday at $37.78.
Ellis noted:
“Brooks Automation (BRKS) Thursday (8/1) AMC F3Q19 results straddled the Street with lower sales and margin-induced EPS upside while F3Q’s sales guide was below on a 5-10% Q/Q Semi segment correction and a growth reset in a Life Sciences sub-segment. We believe Semi’s Patterning sub-segment is slowing as high-ASP products for tier-2 China customers pause. Alternatively, the LS reset impacts two Sample Mgt sub-segments. We believe that’s more incremental to expectations and we offer four takeaways. First, we see weak execution against Twinbank’s growing backlog and sub-optimal BioStorage Svcs Q/Q growth. We peg those at 33% of the segment, or ~15% of sales. Second, issues seem operational rather than strategic, something fixable with leadership changes, which could occur quickly.”
According to TipRanks.com, Ellis is a 5-star analyst with an average return of 10.9% and a 56.3% success rate. Ellis covers the Consumer Goods sector, focusing on stocks such as Applied Materials Inc, Axcelis Technologies, and Rudolph Technologies.
Currently, the analyst consensus on Brooks Automation is a Moderate Buy with an average price target of $51.
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Hanesbrands (HBI)
In a report released yesterday, Susan Anderson from B.Riley FBR reiterated a Buy rating on Hanesbrands, with a price target of $26. The company’s shares closed yesterday at $15.05.
Anderson observed:
“On August 1, HBI reported adjusted 2Q19 EPS of $0.45, at the high end of guidance and in line with B. $0.45, driven by sales growth of +2.7% (vs. B. and constant currency sales of +5%. Management gave 3Q19 adj. EPS guidance of $0.52 to $0.55 (vs. B. and reiterated 2019 adj. EPS guidance of $1.72–$1.80 (vs. B. Riley FBR/consensus $1.77), primarily driven by continued execution on innerwear revitalization initiatives, price increases, a cautious outlook on U.S. brick-and-mortar, continued negative FX pressure, and increased marketing to support brand plans.”
According to TipRanks.com, Anderson is a 1-star analyst with an average return of -0.7% and a 38.0% success rate. Anderson covers the Consumer Goods sector, focusing on stocks such as Lululemon Athletica Inc, Turning Point Brands, and Columbia Sportswear.
The the analyst consensus on Hanesbrands is currently a Hold rating.
ID Systems (IDSY)
In a report released today, Josh Nichols from B.Riley FBR reiterated a Buy rating on ID Systems, with a price target of $8.50. The company’s shares closed yesterday at $6.12.
Nichols noted:
“Buy-rated I.D. Systems (IDSY , $8.50 PT) reported better-than-expected 2Q results on Thursday, 8/1. Revenue, EBITDA, and pro forma EPS of $16.3M/$0.1M/$0.01 aligned closely with our $16.3M/$0.2M/$0.01 and consensus $16.1M/$0.1M/$0.04, respectively. 2Q revenue was an all-time record, up 20% Q/Q even though a $1M Industrial Truck order was pushed out (management expects to close this quarter). Revenue also included the delivery of 18k telemetry units to Avis (CAR), which was ahead of schedule. Sales execution was consistent across the business, and management successfully integrated the Atlanta-based CarrierWeb U.S. assets (acquired in Solutions (LVS) business.”
According to TipRanks.com, Nichols is a 5-star analyst with an average return of 15.6% and a 46.3% success rate. Nichols covers the Consumer Goods sector, focusing on stocks such as Adesto Technologies Corp, Pointer Telocation Ltd, and Immersion Corp.
ID Systems has an analyst consensus of Strong Buy, with a price target consensus of $10.17, which is a 66.2% upside from current levels. In a report issued on July 29, Barrington also maintained a Buy rating on the stock with a $12 price target.
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