FBR Capital Raises Price Target on Harman (HAR) to $90 Following 4Q
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FBR Capital reiterated a Market Perform rating on Harmon International (NYSE: HAR), and raised the price target to $90.00 (from $85.00), following the company's 4Q earnings report. Segment revenues were $843 million, compared to the consensus estimates of $822 million. The adjusted EBITDA margin was 13.8%.
Analyst Christopher Horn commented, "HAR gives investors a wide array of investment exposure—from connected vehicles to stadium audio systems—and there is little question that the company offers a top-of-the-line product suite. However, we believe that this is a stock priced for some of its growth prospects and that certain end markets could be headwinds to growth. We prefer pure-play automotive technology names that are undervalued. That said, HSR's quarter has us incrementally raising our valuation. The company won multiple connected car solution awards with OEMs around the globe, and we believe that the connected car segment is steadily growing its exposure in highervolume segments (i.e., non-luxury segments). With decent performance from the professional services division (which had been a headwind to overall performance during previous quarters), we saw stronger overall company growth; however, the demand landscape in professional remains somewhat debatable. Looking ahead, we are incrementally more positive on HAR shares and are raising our price target from $85 to $90; but we are also reiterating our Market Perform rating, given that we think some of the future opportunities appear to be priced into shares at current levels."
Shares of Harmon International closed at $87.54 yesterday.
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