ARC Group WorldWide Research Coverage Started at Brean Capital (ARCW)
Research analysts at Brean Capital initiated coverage on shares of ARC Group WorldWide (NASDAQ:ARCW) in a report released on Friday. The firm set a “buy” rating and a $30.00 price target on the stock. Brean Capital’s price target points to a potential upside of 57.56% from the company’s current price.
The analysts wrote, “We reiterate our Buy-rating and are raising our TP to $30 (from $23 TP), as ARCW’s instant online quoting initiative gives us greater confidence in our long-standing thesis of $55M in EBITDA for CY’16. Although the initiative is in its preliminary stages (currently in ‘beta’ phase for Plastics customers in 3DMT), we believe ARCW is well on its way to propagating this to its entire product portfolio (MIM, 3DMT, Stamping, etc..) – a la Protolabs'(PRLB, Not-Rated), online quoting system which has been a significant contributor to success of PRLB’s growth over the last few years. We continue to view ARCW as a quickly powerfully developing and differentiated way to invest in the use of advanced technologies impacting traditional fabrication of metal and plastic production parts in traditional manufacturing. Our $30 TP (58% appreciation) reflects a 10x EV/EBITDA – using our framework for CY’16 EBITDA of $55M (Figure 1). However, we believe ARCW could ultimately trade at a minimum of ~10x-11x EV/EBITDA, given that the stock is currently trading at ~15x Street ’15 EBITDA, while we believe Street EBITDA remains low.”
A number of other firms have also recently commented on ARCW. Analysts at Janney Montgomery Scott initiated coverage on shares of ARC Group WorldWide in a research note on Friday, August 15th. They set a “buy” rating and a $26.00 price target on the stock. Separately, analysts at Canaccord Genuity initiated coverage on shares of ARC Group WorldWide in a research note on Monday, August 11th. They set a “buy” rating and a $20.00 price target on the stock. Finally, analysts at Imperial Capital initiated coverage on shares of ARC Group WorldWide in a research note on Monday, June 30th. They set an “outperform” rating and a $20.00 price target on the stock. Five research analysts have rated the stock with a buy rating, The stock currently has an average rating of “Buy” and a consensus price target of $24.00.
Shares of ARC Group WorldWide (NASDAQ:ARCW) traded up 3.15% on Friday, hitting $19.64. 30,953 shares of the company’s stock traded hands. ARC Group WorldWide has a 52-week low of $1.956 and a 52-week high of $20.71. The stock’s 50-day moving average is $16.04 and its 200-day moving average is $14.41. The company has a market cap of $292.8 million and a P/E ratio of 46.55.
ARC Group Worldwide, Inc, formerly ARC Wireless Solutions, Inc, incorporated on September 30, 1987, is a provider of wireless network component and wireless network solutions.
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