Market Overview

UPDATE: Stifel Downgrades FARO Technologies as Embedded Expectations Reflect Leverage/Growth Potential

Share:

In a report published Tuesday, Stifel analyst Patrick Newton downgraded the rating on FARO Technologies (NASDAQ: FARO) from Buy to Hold, and removed the $50.00 price target.

In the report, Stifel noted, “We are downgrading shares of FARO Technologies from Buy to Hold as shares have eclipsed our $50 price target and our analysis indicates a neutral reward to risk profile at current levels given: (1) FARO's premium valuation relative to historical norms and comparable companies on a P/E basis; (2) our analysis indicating investor expectations are beginning to embed aggressive leverage and earnings power in excess of our above consensus 2015 estimates (implicit $2.50/share +); (3) increasing execution risk; (4) our view that impressive laser scanner growth (FLS and X 330) remains sub-scale; and (5) creeping concerns the Arm business is reaching adoption/penetration levels that are likely to negatively impact future growth relative to FARO's historical high-teens organic revenue growth rate (17% revenue CAGR 2000-2012).”

FARO Technologies closed on Monday at $53.56.

Latest Ratings for FARO

DateFirmActionFromTo
Feb 2020Craig-HallumUpgradesHoldBuy
Nov 2019Gabelli & Co.DowngradesBuyHold
Feb 2019Craig-HallumDowngradesBuyHold

View More Analyst Ratings for FARO
View the Latest Analyst Ratings

 

Related Articles (FARO)

View Comments and Join the Discussion!

Posted-In: Patrick Newton StifelAnalyst Color Downgrades Analyst Ratings

Latest Ratings

StockFirmActionPT
JNJCantor FitzgeraldMaintains200.0
PCTYJMP SecuritiesMaintains220.0
ADIBarclaysMaintains170.0
AMATBarclaysMaintains115.0
KMBRBC CapitalMaintains147.0
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.
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 vipaccounts@benzinga.com