UPDATE: Stifel Nicolaus Raises PT on Actuant Following Viking SeaTech Acquisition Announcement

In a report published Tuesday, Stifel Nicolaus analyst Stanley Elliott reiterated a Buy rating on Actuant ATU, and raised the price target from $33.00 to $39.00.

In the report, Stifel Nicolaus noted, “Actuant announced the acquisition of Viking SeaTech, a provider of equipment and services to the oil and gas industry. The transaction is expected to close within 45 days for approximately $225 million. On a price-to-sales basis we find the valuation slightly full, but the asset looks attractive on an EV/EBITDA basis in the neighborhood of 8x. Additionally, this business generates meaningful free cash flow and should be accretive to margins as EBITDA margins run in the high 20% range. We increasing our target price to $39 from $33.”

Actuant closed on Monday at $36.76.