EMCOR Group Upgraded to Buy by DA Davidson (EME)
EMCOR Group (NYSE:EME) was upgraded by stock analysts at DA Davidson from a “neutral” rating to a “buy” rating in a report issued on Thursday, American Banking News reports. The firm currently has a $45.00 price objective on the stock. DA Davidson’s price objective indicates a potential upside of 22.35% from the company’s current price.
The analysts wrote, “Following a sharp decline in nonresidential construction activity between 2009 and 2011, spending on commercial/industrial projects has not meaningfully rebounded, in notable contrast to past construction cycles. Underinvestment and recent improvements in demand within select markets are now increasing support for new spending initiatives on commercial and industrial nonresidential investment. As shown in Diagram I, the ABI index of advance billing demand has historically led organic growth for EMCOR by a year. A recent upturn in the index provides a positive early indicator of building activity. Notably there is some risk that the recent government shutdown could slow some project planning over the near-term, although we suspect a slowing would be temporary.”
EMCOR Group (NYSE:EME) traded up 3.43% on Thursday, hitting $37.98. 168,549 shares of the company’s stock traded hands. EMCOR Group has a one year low of $27.91 and a one year high of $43.98. The stock has a 50-day moving average of $38.75 and a 200-day moving average of $39.79. The company has a market cap of $2.548 billion and a P/E ratio of 18.19.
EMCOR Group (NYSE:EME) last released its earnings data on Thursday, July 25th. The company reported $0.48 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.52 by $0.04. The company had revenue of $1.56 billion for the quarter, compared to the consensus estimate of $1.63 billion. During the same quarter in the prior year, the company posted $0.49 earnings per share. The company’s quarterly revenue was down 2.1% on a year-over-year basis. Analysts expect that EMCOR Group will post $2.31 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Wednesday, October 30th. Shareholders of record on Tuesday, October 15th will be given a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a yield of 0.65%. The ex-dividend date of this dividend is Thursday, October 10th.
A number of other firms have also recently commented on EME. Analysts at TheStreet downgraded shares of EMCOR Group from a “buy” rating to a “hold” rating in a research note to investors on Wednesday, August 21st. Separately, analysts at Zacks downgraded shares of EMCOR Group from an “outperform” rating to a “neutral” rating in a research note to investors on Thursday, August 1st. They now have a $47.60 price target on the stock. Finally, analysts at FBR Capital Markets raised their price target on shares of EMCOR Group from $34.00 to $40.00 in a research note to investors on Friday, July 26th. They now have a “market perform” rating on the stock. Four research analysts have rated the stock with a hold rating and three have given a buy rating to the company. The stock currently has an average rating of “Hold” and a consensus target price of $43.27.
EMCOR Group, Inc (NYSE:EME) is an electrical and mechanical construction and facilities services firm in the United States, the United Kingdom and globally.
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