Wedbush Reiterates Outperform on Quanex (NX) Following Investor Meetings
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Wedbush reiterated an Outperform rating and $23.00 price target on Quanex Building Products (NYSE: NX) following investor meetings with management. While recent financial results have been disappointing, Wedbush sees a favorable risk/reward profile and continues to believe shares offer an attractive entry point.
Analyst Al Kaschalk commented, "We continue to believe shares of Quanex Building Products (NX) offer an attractive entry point as investors gain confidence in the enterprise value created from an inherently more profitable mix that came with an expanded product portfolio. With operational improvements and scale efficiencies in North American Engineered Components (NAEUC) completed, we look for further profitability improvement as we look for management to reduce its customer base as it implements its version of the 80/20 Rule moderating top-line growth but expanding profitability and margin. With a higher percent of net income converting to free cash flow, leverage ratio should decline ahead of guidance. Absent strategic acquisitions, we look for the Board to assess capital allocation policies with a new share repurchase program authorized exiting FY16. With a repurchase program providing a soft floor on the share price, we see a favorable risk/reward opportunity for the shares and reiterate our OUTPERFORM rating."
Shares of Quanex Building Products closed at $17.28 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Pivotal Research Downgrades Kroger (KR) to Hold
- Brean Capital Cuts Price Target on G-III Apparel Group (GIII) Following 3Q Miss
- Sonoco (SON) Affirms FY16 Outlook; Guides FY17 EPS Below Views
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesEarnings, Al Kaschalk
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!