Imperial Capital Reiterates Outperform, Lowers Price Target On ARC Group WorldWide On FY 2Q15 Review

In a report published Monday, Imperial Capital analyst Ashok Kumar reiterated an Outperform rating on

, but lowered the price target from $15.00 to $9.00. In the report, Imperial Capital noted, "We are maintaining our Outperform rating, but are lowering our one-year price target to $9 from $15 on ARCW shares. Our price target is about 38% above the recent share price. We expect the continued weakness in the company's firearms business to cause a significant drag on near-term results. While ARCW's other end markets, including medical and dental, remain strong, it is not strong enough to negate the near-term firearms declines. The weakness in firearms is not a result of market share loss, but it is indicative of overall industry declines. The uncertainty around the recovery for firearms demand and timeline for cost effective integration of acquisitions could continue to pressure the stock, in our view. We are lowering our FY15 revenue estimate to $114.3mn from $125.2mn and non-GAAP EPS to $0.15 from $0.37. We are also lowering our FY16 revenue estimate to $128.6mn from $154.7mn and non-GAAP EPS to $0.58 from $0.76." ARC Group WorldWide closed on Friday at $6.52.