UPDATE: J.P. Morgan Reiterates Neutral Rating, Lowers PT on American Reprographics
In a report published Wednesday, J.P. Morgan & Co. reiterated its Neutral rating on American Reprographics Company (NYSE: ARC), but slightly lowered its price target from $6.00 to $5.00.
J.P. Morgan noted, “American Reprographics Company is the leading reprographics services provider in the United States. Historically, ARC's organic rate has been highly correlated to nonresidential construction as the company generates 77% of its revenues from architectural, engineering, and construction (AEC) firms. The non-residential construction market naturally lagged the broader pickup in the US economy and continues to remain challenged amid the uneven recovery. ARC has reduced its costs to align with current revenues trends and is actively diversifying away from its core business by expanding into new non-AEC business initiatives. Going forward, we view the timing of the return in non-residential spending and the success of the newer service lines as the key variables impacting the ARC stock.”
American Reprographics Company closed on Tuesday at $4.58.
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