UPDATE: KeyBanc Capital Markets Upgrades Federal Signal to Buy Post Meetings with Management
KeyBanc Capital Markets raised its rating on Federal Signal (NYSE: FSS) from Hold to Buy and established a $9 price target.
KeyBanc Capital Markets said, "Broadly speaking, we think that Mr. Martin and his team have taken and are taking a thoughtful and methodical approach toward pricing, operational and organizational restructuring, and balance sheet actions. Those actions, in our view, now provide a foundation for what we think will be more predictable earnings growth and more consistent cash flow generation. While our views around FSS's fundamental longer-term story are more positive than they have been in several years, we acknowledge that our enthusiasm is somewhat tempered by the potential for near-term order book volatility in FSS's Fire & Emergency (Bronto) and municipal business. These concerns, however, are less company specific than thematic, and are consistent with our broader outlook given the current political and economic environment."
Federal Signal closed at $5.88 on Friday.
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