Wedbush Remains Sidelined on Franklin Electric (FELE); Expects Growth to Reurn in 2016

Wedbush reiterated a Neutral rating on Franklin Electric (NASDAQ: FELE), and cut the price target to $33.00 (from $34.00), following the company's 4Q earnings report. The company reported adjusted EPS of $0.35, coming in-line with consensus' estimates. Revenues of $219.3 million were below consensus estimates of $225.8 million. Wedbush expects the company's earnings growth to return in 2016, now that it is operating under a more efficient cost structure through restructuring and cost savings implemented last year.

Analyst David Rose commented, "Despite ongoing challenges arising from weak energy and agriculture markets, Franklin Electric reported in-line earnings on lighter revenues as the company is now operating under a more efficient cost structure through restructuring and cost savings implemented last year. As a result, we would expect earnings growth to return in 2016 as FELE leverages modest growth on its reduced cost structure. However, we believe the shares are fairly valued providing little upside at this time."

For an analyst ratings summary and ratings history on Franklin Electric click here. For more ratings news on Franklin Electric click here.

Shares of Franklin Electric closed at $28.51 yesterday.

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