UPDATE: Stifel Reiterates On Actuant Corporation As Active Capital Strategy Will Define FY15

In a report published Friday, Stifel analyst Stanley Elliott reiterated a Buy rating on Actuant Corporation (NYSE: ATU), but lowered the price target from $41.00 to $39.00.

In the report, Stifel noted, “Actuant reported 4Q14 results that essentially matched expectations, with a favorable tax rate and share repo offsetting operational weaknesses. Core sales decelerated as the year progressed with core sales finishing 4Q down 1% y/y. Demand conditions will likely remain challenging in the short-term and the company expects core sales in the November quarter to be 0-2% before accelerating as the year progresses. Actuant continues to possess considerable financial flexibility and has become more aggressive with its share repurchase, dividend, and we see a likelihood of potential M&A deals later in the year. These measures, alongside the 7% free cash flow yield, should provide support for the shares.”

Actuant Corporation closed on Thursday at $30.66.