MKM Partners Defends Tutor Perini (TPC) After Muddy Waters' Short Call
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MKM Partners analyst Daniel Scott defended Tutor Perini Corporation (NYSE: TPC) following yesterday's sharp sell-off (>6%) on reports Muddy Waters was recommending shorting the stock, saying cash flows and cash levels have been insufficient to weather the "unpredictable, negative free cash flow business." Scott reiterated a Buy rating and price target of $28.
"We note that the company reiterated revenue and earnings guidance on the call and was looking for stronger 2H cash flows, which is seasonally typical for the company," the analyst said.
The report also cited risk that the company's bank lenders could "pull" the credit facility, which they believe is unfounded given the company being well within its leverage limit.
Shares of Tutor Perini Corporation closed at $20.75 yesterday.
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Related EntitiesEarnings, Muddy Waters LLC
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