Needham & Company Upgrades Faro Technologies (FARO) to Buy

Needham & Company upgraded Faro Technologies (NASDAQ: FARO) from Hold to Buy with a price target of $37.00.

Analyst James Ricchiuti commented, "We are upgrading FARO to Buy from Hold. FARO shares are down over 20% since the company reported a weak Q3 and announced that CEO Jay Freeland was stepping down (and are off over 50% Y/T/D, vs down just over 2% for the S&P 500). Two weeks ago, FARO announced that Simon Raab, its chairman and co-founder, was assuming the role as interim CEO. We upgrade the stock for 2 main reasons. First, we believe cost-reduction actions FARO announced after Q3 have provided upside to our 2016 estimates, even if revs don’t show a meaningful recovery. Second, while FARO shares are up 18% from their lows in early Nov., the shares are near historical trough valuations going back 5 yrs. While we see no clear evidence yet of meaningful improvement in FARO’s fundamentals, we view the risk-reward opportunity as attractive, with FARO trading at less than 0.9x EV/2016 revs."

For an analyst ratings summary and ratings history on Faro Technologies click here. For more ratings news on Faro Technologies click here.

Shares of Faro Technologies closed at $27.61 yesterday.

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