UPDATE: Global Hunter Securities Starts Dynamic Materials (BOOM) at Accumulate; Leader in Explosion-Welding with Significant Barriers to Entry

(Updated - May 16, 2012 8:45 AM EDT)

Global Hunter Securities initiates coverage on Dynamic Materials (NASDAQ: BOOM) with an Accumulate. PT $22.00.

Analyst, Joe Giamichael, said, "As a niche product company, BOOM’s business has focused on energy-related end-markets, which now account for ~60% of revenues. In the near term, we believe the company has good momentum in its core clad plating business as its customers' seasonal maintenance cycle begins and pipeline opportunities indicate a solid demand environment. Ongoing international expansion represents growth and geographic diversification opportunities. The recent vertical integration through the acquisition of TRX, the perforation gun company, has rapidly increased its presence and filled out its product offering in the oilfield services space. Despite its growth, BOOM has generated positive free cash flow in each of the last ten years, has maintained low leverage ratios compared with industry peers and currently returns proceeds to investors through a small dividend."

For an analyst ratings summary and ratings history on Dynamic Materials click here. For more ratings news on Dynamic Materials click here.

Shares of Dynamic Materials closed at $18.58 yesterday.

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