Needham & Company Cuts Price Target as CECO Environmental (CECE) Delivers Mixed 4Q Results
Needham & Company maintained a Buy rating on CECO Environmental (NASDAQ: CECE), and cut the price target to $10.00 (from $13.00), following the company's 4Q earnings report. Some market softness materialized in Environmental and Energy, leading to mixed results. CECE reported $104M in revenue, $12.7M adjusted EBITDA and $0.18 non-GAAP EPS. Prior consensus called for $103.8M/$11.5M/$0.21.
Analyst Sean Hannan commented, "CECE delivered a mixed 4Q as some market softness materialized in Environmental (incl. China) and Energy (i.e., coal-fueled utilities). Yet again, consolidated organic growth remains elusive for CECE while recent acquisitions are contributing positively (namely PMFG, now nearly fully integrated). We acknowledge challenging markets and the absence of much growth near term, but we still fundamentally believe in long-term opportunities at CECE. Specifically, we are optimistic on biz expansion (i.e., Asia), improved operating leverage, and capitalizing on (and cross-selling) what is now a fairly robust product portfolio that is also much better positioned for mid- and downstream Energy (a positive). Reiterate Buy."
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Shares of CECO Environmental closed at $6.38 yesterday.