Stifel Sees Positive Catalysts On MSA Safety's Horizon, Upgrades To Buy

Stifel analysts, Stanley Elliott and Martin McElroy, has upgraded shares of MSA Safety Inc (NYSE: MSA) citing positive catalysts. The brokerage has kept the price target of $61 on the company's shares.In a note to clients, the two analysts said, "While the initial product approval was slower than expected, uptake of this product has exceeded expectations. MSA's share position in North America moved from a #2 position to a leading share position with nearly 50% market share in short time. Order momentum has not slowed and MSA continues to convert 50% of competitive bids with the new G1. We believe MSA is well positioned over the next 18-24 months as the North American replacement cycle gains momentum."Stifel believes that given the robust start to the year, the two analysts felt that the estimations could prove conservative by the end of the year. At end of the first quarter, MSA's insurance receivable increased to $239 million. These are monies previously paid by MSA to settle warranty claims. The brokerage said that settlement likely won't mean a windfall of cash for the company. However, it should save ongoing legal expenses. Alone this would add 1% to EBIT and $20-30 million to free cash flow by our estimate.The two analysts have modestly tweaked their revenue estimation for the year 2016 and now expect 5.8% growth in the coming year, down from its previous 6.3% growth estimation. The brokerage's 2016 EPS estimate moves to $2.76 from $2.77.The stock traded 5.40 percent higher on Tuesday.