Signal price

KeyBanc, DA Davidson Raises Federal Signal Price Target After Third Quarter Results – Federal Signal Corp. (FSS)

  • Key bank analyst Steve Barger raised the price target on Federal Signal Society (NYSE: FSS) at $ 55 (up 16%) from $ 44 and maintained an overweight rating on stocks.
  • The analyst notes that stocks rose in the wake of its third quarter results despite a lack of income and declining income. He believes investors were ready to examine the results as large orders increased the order book by 52% year-on-year.
  • Barger believes Federal Signal is well positioned to benefit from the recently passed infrastructure bill, which could boost future sales or rentals of dump trucks and trailers, safe digging trucks, road marking equipment , sewer cleaners and street sweepers.
  • The analyst acknowledges that stocks are trading above historical valuation ranges, but expects his model to rise thanks to organic growth and mergers and acquisitions.
  • DA Davidson Analyst Michael Shlisky raised the price target to $ 47 from $ 45 and maintained a neutral rating on equities.
  • Recently, Federal Signal released third quarter results with adjusted EPS of $ 0.48, beating the consensus of $ 0.46 and sales of $ 298.3 million (+ 7% year-on-year), missing the consensus of $ 325.50 million.
  • Orders increased 32% year-on-year to $ 350 million. The backlog stood at $ 487 million, a 60% increase from the end of last year.
  • The operating margin was 11.5%, compared to 12.2% in the previous year quarter.
  • Adjusted EBITDA increased 3% year-on-year to $ 47.4 million, and the margin was 15.9% from 16.4% last year.
  • Operating activities generated net cash flow of $ 16 million during the quarter, bringing total operating cash generation to $ 55 million year-to-date.
  • Outlook FY21: The company lowered its adjusted EPS outlook to $ 1.68 – $ 1.78 (previous outlook $ 1.78 – $ 1.90) from the consensus of $ 1.85.
  • Price action: FSS shares closed 0.25% lower at $ 47.2 on Wednesday.

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