Goldman Initiates Harman Int'l With Buy Rating, $110 Target

On Thursday, Goldman Sachs issued a company note on Harman International Industries Inc./DE/ HAR after recent analysis showed the potential for consumer and OEM-driven secular revenue growth. Analysts at Goldman Sachs initiated coverage on Harman International with a Buy rating and a six-month price target of $110.

David Tamberrino and Jay Yang, analysts at Goldman Sachs, wrote, "While we are in the later stages of the North American auto cycle, we see value in shares given secular-driven top-line revenue growth, a sustainable competitive advantage relative to peers with recent software/security acquisitions, as well as an above average ROIC and FCF percentage of revenue."

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Key Value Catalysts

Analysts at Goldman Sachs gave two key reasons they believe Harman International can bring value to shareholders.

1. Growth In Infotainment: As the leader in the Infotainment market, Goldman Sachs believes that Harman International can capitalize on the increasing trend of in-person entertainment in automobiles and expand their user base of products and capabilities, with the potential to drive revenue and margin growth in the near term.

2. Acquisitions: Goldman Sachs highlighted that Harman has made significant acquisitions in software services and cybersecurity that can further differentiate them from competitors while increasing their core capabilities to their customer base.

Harman International last traded at $87.01.