UPDATE: Seaport Global Securities Upgrades NV5 Holdings (NVEE) to Buy

September 19, 2016 8:55 AM EDT
Get Alerts NVEE Hot Sheet
Price: $25.76 -11.99%

Rating Summary:
    1 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 23 | New: 30
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(Updated - September 19, 2016 9:25 AM EDT)

Seaport Global Securities upgraded NV5 Holdings (NASDAQ: NVEE) from Accumulate to Buy with a price target of $36. Analyst Ryan Cassil said several top-line catalysts appear to be underappreciated. He also said takeout possibility is "increasingly likely."

"Takeaways from our recent non-deal roadshow with management indicate that the M&A pipeline remains more robust than ever before. In addition, we are incrementally more confident that not only can NVEE achieve its $300MM revenue run-rate by year end, but that it will also likely have significant additional M&A growth opportunities in 2017. We anticipate that organic growth trends also have upward momentum given the increase in environmental work in the South/Southeast, as well as state work in the Northeast. We believe the recent market pullback is an opportunity to pick up a double-digit top-line growth company with M&A opportunities in front of it for 16x 2017E (excluding any future M&A) EPS. Our price target remains at $36, which represents 20x our 2017 EPS estimate," said Cassil.

The analyst added, "Management has a history of building and selling public companies, and we do not see a change in philosophy at NVEE. As the company approaches $40MM-$50MM in EBITDA, we believe CEO Dickerson Wright could potentially look to make an exit via the sale of the business."

For an analyst ratings summary and ratings history on NV5 Holdings click here. For more ratings news on NV5 Holdings click here.

Shares of NV5 Holdings closed at $29.00 yesterday.

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