UPDATE: DA Davidson Initiates Matrix Service Company at Buy on Growth, Valuation

DA Davidson initiated coverage on Matrix Service Company MTRX with a Buy rating and a $13 price target. DA Davidson noted, "The company has undergone notable management turnover over the past several years. The new team has launched a new growth plan calling for 12%-15% annual growth over the next five years, with plans for acquisitions. … As the benefits of management's growth strategy become more apparent and market conditions continue to support growth in backlog, revenue, and earnings, we expect the shares to trade closer to long term historical ranges and E&C peers." Matrix Service Company closed at $10.71 on Tuesday.