Roth Starts Unique Fabricating At Buy, Sees 'Unique Growth Opportunity'

In a report published Monday, Roth Capital Partners analyst Matt Koranda initiated coverage of Unique Fabricating Inc UFAB with a Buy rating. Analyst Matt Koranda pointed out that Unique Fabricating was poised for robust growth across multiple end markets in the noise, vibration and harshness industry. The company is expected to leverage its leadership position in the conversion of automotive NVH materials segment to increase its content per vehicle, expand product offerings and enter into adjacent markets. "UFAB's recent IPO has enabled a cleaner balance sheet and the public currency provides dry powder for potential future acquisitions," the Roth Capital Partners report noted adding that, "We believe UFAB is positioned to drive double digit percentage revenue growth ahead," Koranda wrote. Unique Fabricating is expected to aggressively enter into industrial end markets like appliances, water heaters and HVAC equipment by leveraging its manufacturing footprint in Mexico. In the report Roth Capital Partners noted, "UFAB has established a track record of delivering strong organic revenue growth; we forecast a 13% revenue CAGR through 2017." Unique Fabricating should command a premium multiple over its automotive supplier peers in view of its superior revenue growth outlook, above media ROIC and strong growth opportunities outside the automotive market, Koranda said.
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