B.Riley FBR analyst Dan Drawbaugh reiterated a Buy rating on Rcm Technologies (RCMT) today and set a price target of $6. The company’s shares closed yesterday at $3.12.
Drawbaugh noted:
“RCM Technologies (RCMT) reported a 2Q19 earnings beat vs. our expectations, on the close. In spite of slightly below-estimate total revenue, AEBITDA and EPS (GAAP) both exceeded our estimates due to a strong gross margin result and good opex performance. While growth rates in the engineering business remained challenging in the second quarter, with 2Q19 revenue in this segment -14% Y/Y vs. our modeled -9% Y/Y , we remain focused on RCMT’s long- term opportunity in electrical transmission and distribution (T&D) engineering projects. Further, the engineering segment’s 2Q19 gross margin was 28.3%, up more than 200 bps Y/Y and coming in well above our expectations.”
According to TipRanks.com, Drawbaugh is ranked #4141 out of 5229 analysts.
Currently, the analyst consensus on Rcm Technologies is a Moderate Buy with an average price target of $6.
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Rcm Technologies’ market cap is currently $39.8M and has a P/E ratio of 12.60. The company has a Price to Book ratio of 1.38.
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RCM Technologies, Inc. engages in the provision of business and technology solutions. It operates through the following business segments: Engineering, Specialty Health Care, Information Technology, and Corporate. The Engineering segment comprises of engineering, design, engineering analysis, technical writing, and technical support services.
