UPDATE: Wells Fargo Upgrades Brady Corp. (BRC) to Overweight

June 8, 2021 5:46 AM EDT
Get Alerts BRC Hot Sheet
Price: $50.88 +0.04%

Rating Summary:
    3 Buy, 3 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 17 | Down: 5 | New: 36
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(Updated - June 8, 2021 6:56 AM EDT)

Wells Fargo analyst Michael McGinn upgraded Brady Corp. (NYSE: BRC) from Equal Weight to Overweight with a price target of $70.00.

The analyst comments "Our revised and Street-high estimates now include the pending acquisitions of Nordic ID and Magicard, as well as higher core sales and margins. We raised our FY '21/ '22/ '23 estimates to $2.68/ $3.20/ $3.40 (vs. $2.65/ $2.90/ $3.00). Our $70 price target (vs. $50) implies 14x and 21x CY '22 earnings and EBITDA, respectively (= 21% upside potential). Importantly, BRC shares are trading 19x next year's earnings (vs. 18-21x historically); however, operating margins have improved every year since FY '16, deeming valuation too compelling to ignore, in our view."

For an analyst ratings summary and ratings history on Brady Corp. click here. For more ratings news on Brady Corp. click here.

Shares of Brady Corp. closed at $57.99 yesterday.


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