Wall Street Bullish On Metaldyne Performance Group As Quiet Period Expires

Metaldyne Performance Group MPG saw four major Wall Street research firms initiate coverage on its stock on Wednesday, as the sell-side quiet period expired. The stock is up about 4 percent, to $17.70, on Wednesday trading.

The producer of automobile powertrain and safety components, had opened for trading on December 12. Forty days have passed, so analysts can now weigh in on the stock. Here’s what they think:

• Deutsche Bank initiated coverage with a Buy rating and a $21 price target, arguing that “suppliers have gained pricing power, and margins (EBITDA margins and EBITDA minus Capex margins) are now among the highest in the Auto Parts Industry,” and that “these above average margins should be sustainable for the foreseeable future, largely because of the challenges involved in bringing on more capacity.”
• Goldman Sachs issued a Buy rating and a target price of $23.
• Baird gave Metaldyne Performance Group’s stock an Outperform rating and a $24 price target
• Barclays assumed coverage with an Overweight recommendation and a $23 price target.