Skip to main content

Market Overview

UPDATE: Citigroup Raises PT on Federal Signal Following 2Q13 Report


In a report published Monday, Citigroup analyst Matthew W. McConnell reiterated a Neutral rating on Federal Signal (NYSE: FSS), and raised the price target from $9.00 to $11.00.

In the report, Citigroup noted, “Federal Signal's 2Q13 operating performance had ample evidence of the successful transformation that continues to gain steam: Upside revenue as new capacity comes online, a healthy margin beat, solid free cash flow, and a 10c boost to 2013 guidance. The shares were appropriately rewarded with a 9% increase on Aug-9. There is increasing evidence that critical municipal markets (roughly 60% of sales) have bottomed, and Europe (roughly 30%) appears to have stopped declining. We remain impressed with the execution on the turnaround. We reiterate our Neutral rated given our view that 2Q results included the benefit of backlog burn, implying that the recent performance is unlikely sustainable barring a meaningful uptick in orders. An increase in GAAP tax next year also presents the risk of little to no 2014 EPS growth, even if margin execution remains solid. We are increasing our 2013 EPS estimates for the 2Q beat, and increasing our target from $9 to $11, but remain Neutral rated.”

Federal Signal closed on Friday at $10.41.

Latest Ratings for FSS

Dec 2020Raymond JamesInitiates Coverage OnMarket Perform
Dec 2020KeyBancUpgradesSector WeightOverweight
Jul 2020Colliers SecuritiesInitiates Coverage OnBuy

View More Analyst Ratings for FSS
View the Latest Analyst Ratings


Related Articles (FSS)

View Comments and Join the Discussion!

Posted-In: Citigroup Matthew W. McConnellAnalyst Color Price Target Analyst Ratings

Latest Ratings

FSRMorgan StanleyMaintains40.0
MEDDA DavidsonMaintains302.0
VICRBWS FinancialMaintains120.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at