UPDATE: D.A. Davidson Upgrades Furmanite as Earnings Growth Accelerates
In a report published Monday, D.A. Davidson analyst Tristan Richardson upgraded Furmanite (NYSE: FRM) from Neutral to Buy, and raised the price target from $8.00 to $12.00.
In the report, D.A. Davidson noted, “We are adjusting our projections for 2013 to incorporate our initial estimate of contribution from the recently announced acquisition of ENGlobal's (ENG – $0.95) Gulf Coast operations expected to close in the current quarter. Notably, we expect earnings in the current quarter will likely include transaction-related costs including amortization and integration expenses. Management increased its guidance for 2013; the outlook does not include any impact of the acquisition. For 2014 we are increasing our projections as a result of improved growth prospects in the U.S. as well as some contributions from the ENG acquisition.”
Furmanite closed on Friday at $7.97.
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