KeyBanc Upgrades KLX Inc (KLXI) to Overweight

KeyBanc upgraded KLX Inc (NASDAQ: KLXI) from Sector Weight to Overweight with a price target of $40. Analyst Michael F. Ciarmoli sees improvement in the second half of the year.

"While end market conditions remain challenged, we believe KLXI's ESG unit has bottomed and expect modest seq'l improvements going forward. Moreover, easier 2H16 ASG comps, the benefits of the Herndon acquisition and restructuring should all combine to produce better EPS, EBITDA, cash flow and optics in the coming quarters. Our SOTP analysis points to ASG and ESG valuations of $38/share and $2/share anchoring our $40 PT. Lastly, we see KLXI's discounted valuation and relative underperformance as attractive investment characteristics," said the analyst.

For an analyst ratings summary and ratings history on KLX Inc click here. For more ratings news on KLX Inc click here.

Shares of KLX Inc closed at $31.59 yesterday.

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