KeyBanc Starts Houston Wire & Cable (HWCC) at Sector Weight

December 1, 2016 6:58 AM EST
Get Alerts HWCC Hot Sheet
Price: $5.30 --0%

Rating Summary:
    2 Buy, 3 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 8 | Down: 13 | New: 22
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KeyBanc initiated coverage on Houston Wire & Cable (NASDAQ: HWCC) with a Sector Weight rating. Analyst Ryan Cieslak sees balanced risk-reward.

"We initiate coverage of HWCC with a Sector Weight rating. HWCC screens well with respect to our broader distributor thesis, including its niche market position and network capabilities. These dynamics, combined with a runway to “scaleup”, expand its product lines and penetrate adjacent markets create an intriguing small-cap distributor story with leverage to a pending oil & gas (one-third of sales) and broader industrial recovery. That said, NT earnings visibility remains limited and impacted by cyclical longer-cycle project spending and ongoing oil & gas uncertainty. Combined with more elevated balance sheet leverage, we view the risk/reward as appropriately balanced at current levels," said the analyst.

For an analyst ratings summary and ratings history on Houston Wire & Cable click here. For more ratings news on Houston Wire & Cable click here.

Shares of Houston Wire & Cable closed at $6.10 yesterday.

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