UPDATE: D.A. Davidson Initiates Furmanite at Neutral on Valuation
In a report published Thursday, D.A. Davidson analyst Tristan Richardson initiated coverage on Furmanite (NYSE: FRM) with a Neutral rating and $8.00 price target.
In the report, D.A. Davidson noted, “Financial results in recent years have been impacted by significant restructuring charges, primarily as a result of a reorganization and weaker demand in Europe. We expect 2013 results to largely be free of these issues, which should contribute to growth from the depressed levels in 2012. Additionally, given the company's scale, Furmanite is also positioned as a national contractor that can take share from small single-market and/or single-service providers. We are establishing an initial price target of $8, in line with historical valuation levels and peers. Although growth prospects appear significant, given the modest appreciation potential to our initial target, the shares currently discount expected growth. We are initiating coverage with a NEUTRAL rating.”
Furmanite Corporation closed on Wednesday at $6.86.
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