Seaport Global Securities Downgrades Federal Signal (FSS) to Accumulate

Seaport Global Securities downgraded Federal Signal (NYSE: FSS) from Buy to Accumulate with a price target of $14.00 (from $20.00).

Analyst Walt Liptak commented, "The 2016 outlook deteriorated due to the company's indirect O&G sector exposure. The company's sales mix of O&G is only ~10% of sales, but the North American region's inventory of used trucks is lowering demand for FSS products sold to environmental services companies. The lower 2016 EPS guidance of $0.70 to $0.80 is the result of the company's direct and indirect energy-related sales and higher legal expenses. We are lowering our 2016 and 2017 EPS to $0.75 from $1.07 and $0.85 from $1.19, respectively. We are lowering our price target to $14 from $20. Our new price target equates to a 2017 EV/EBITDA of 7.3x and P/E of 16.5x, which is in line with the SGS Diversified Industrial group. We are lowering our rating to Accumulate from Buy due to the lower 2016-2017 EPS outlook."

For an analyst ratings summary and ratings history on Federal Signal click here. For more ratings news on Federal Signal click here.

Shares of Federal Signal closed at $11.86 yesterday.

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