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ARC Group Upgraded At Canaccord: Here's Why

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In a report published Friday, Canaccord Genuity analyst Bobby Burleson upgraded the rating on ARC Group WorldWide Inc (NASDAQ: ARCW) from Hold to Buy, while raising the price target from $6 to $8, following a visit to the company’s DeLand Florida facility and a meeting with CEO Jason Young.

Analyst Bobby Burleson expects ARCW's fundamentals for revenue, EBITDA and earnings to improve y/y over the next several quarters, with a recovery in the firearms business, 3DMT’s metal 3D printing efforts beginning to yield results and Y/Y comps becoming easier.

In the report Canaccord Genuity enumerated its investment highlights as:

  • Improving visibility in 3DMT, ahead of easing Y/Y comps and improving firearms trends
  • ARCW is believed to have received multiple orders including a "sizable order" for metals production within its 3DMT segment
  • ARCW's valuation could expand with demand for 3DMT becoming more evident
  • "While we are comfortable with our estimates, consensus estimates may prove a little aggressive near term"

Burleson further added, "Looming momentum for the company’s 3DMT business is a key driver of our upgrade as we believe ARCW is well positioned to leverage its expertise in complex metal parts into a significant metal 3D printing manufacturing opportunity over the next several years, an expertise enhanced greatly by its leadership in metal injection molding (MIM)."

Latest Ratings for ARCW

DateFirmActionFromTo
Apr 2017Imperial CapitalRemovesIn-LineIn-Line
Feb 2016Imperial CapitalMaintainsIn-Line
Sep 2015Imperial CapitalDowngradesOutperformIn-Line

View More Analyst Ratings for ARCW
View the Latest Analyst Ratings

Posted-In: Bobby Burleson Canaccord GenuityAnalyst Color Upgrades Analyst Ratings

 

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