Needham & Company Upgrades Planar Systems (PLNR) to Buy, $7 PT

Needham & Company upgraded Planar Systems (NASDAQ: PLNR) from Hold to Buy with a price target of $7.00.

Analyst James Ricchiuti comments, "We acknowledge missing the early part of PLNR's turnaround, which has been driven by strong growth in its digital signage (DS) business (~47% of rev). The performance of its legacy display business has been mixed, but its Commercial & Industrial display business, which declined 10% last year, appears to have stabilized and is expected to be flat in F15. Mgmt provided upbeat guidance for FQ1, with rev expected up 36%-43% on the back of continued strength in its digital signage products. PLNR shares are likely to gap higher today. With margins on the DS products running above corporate and even with a deceleration in the rapid 36% DS growth registered in F14, we believe PLNR's earnings turnaround is sustainable. With the shares trading at less than 7x our F15 estimate, we are upgrading PLNR to Buy from Hold."

The firm is increasing FQ1 EPS estimate to $0.16 from $0.07 and F15 EPS estimate to $0.57 from $0.27. They are introducing a F16 EPS estimate of $0.68.

For an analyst ratings summary and ratings history on Planar Systems click here. For more ratings news on Planar Systems click here.

Shares of Planar Systems closed at $3.70 yesterday.

You May Also Be Interested In

• Needham Upgrades Netflix (NFLX) to Buy, 'on Rev Upside from Tech Stack'
• Intuitive Surgical (ISRG) PT Raised to $435 at Piper Sandler
• CIMC Enric Holdings Ltd. (3899:HK) (CIMEF) PT Lowered to HK$8.70 at HSBC