Standex International Corporation announced the sale of its jet engine components business, Enginetics Corporation for $11.5 million in cash to aerospace engine component manufacturing company, Enjet Aero.
Standex’s (SXI) CEO David Dunbar said that the deal will be immediately accretive to the operating margin. Dunbar added, “Today’s sale of Enginetics enables our Engineering Technologies Group to focus on the higher growth and margin opportunities of its core spin forming solutions business that serves the space, commercial aviation and defense end markets.” (See Standex stock analysis on TipRanks)
On March 1, Barrington analyst Christopher Howe raised the stock’s price target to $110 (15.1% upside potential) from $101 “to account for the company’s performance.” Howe maintained a Buy rating on the stock, “considering the recent share price accretion and based on our continued high level of confidence in the company’s evolution,” the analyst said in a note to investors.
Overall, the rest of the Street has a Moderate Buy consensus rating based on 2 unanimous Buys. The average analyst price target of $107 implies upside potential of about 12% to current levels. Shares have gained about 101.3% in one year.
On TipRanks’ Smart Score ranking, Standex gets a 7 out of 10, suggesting that the stock is likely to perform in-line with market expectations.
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