KeyBanc Downgrades Brady Corp. (BRC) to Hold; Concerns in Asia and Impact of Slower Growth
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Price: $90.73 -1.39%
Rating Summary:
3 Buy, 3 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
3 Buy, 3 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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KeyBanc downgraded Brady Corp. (NYSE: BRC) from Buy to Hold.
KeyBanc analyst says, "We are downgrading our rating on shares of BRC as a result of our concerns around the potential for persistent growth headwinds in the Asia-Pacific region for the OEM business and our reassessment of the timing of the Company's cost savings program potential in the context of a softening in its main end market (general industrial). Further, we believe acquisitions, which would accelerate earnings growth, are more likely to be smaller in nature (i.e., $30 million-$50 million) and do not foresee a large, transformational acquisition as likely or imminent. While we find the current share price attractive relative to its historical multiples and remain positive on the Company's differentiated business model and strong free cash flow profile, we believe the risk/reward is balanced at this point given the above factors that should inhibit the stock from outperforming the broader market for the foreseeable future."
For more ratings news on Brady Corp. click here and for the rating history of Brady Corp. click here.
Shares of Brady Corp. closed at $31.99 yesterday.
KeyBanc analyst says, "We are downgrading our rating on shares of BRC as a result of our concerns around the potential for persistent growth headwinds in the Asia-Pacific region for the OEM business and our reassessment of the timing of the Company's cost savings program potential in the context of a softening in its main end market (general industrial). Further, we believe acquisitions, which would accelerate earnings growth, are more likely to be smaller in nature (i.e., $30 million-$50 million) and do not foresee a large, transformational acquisition as likely or imminent. While we find the current share price attractive relative to its historical multiples and remain positive on the Company's differentiated business model and strong free cash flow profile, we believe the risk/reward is balanced at this point given the above factors that should inhibit the stock from outperforming the broader market for the foreseeable future."
For more ratings news on Brady Corp. click here and for the rating history of Brady Corp. click here.
Shares of Brady Corp. closed at $31.99 yesterday.
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