Roth Capital Believes HZN Won’t Stop Here

By Austin Angelo

Roth Capital analyst Matt Koranda reiterated a Buy rating on Horizon Global (NYSE: HZN) yesterday and set a price target of $22. The company’s shares opened today at $19.90, close to its 52-week high of $22.12.

Koranda noted:

“We continue to see upside levers to boost operating margins in Horizon North America in the coming quarters, including improved sourcing, brand consolidation, and plant consolidation. This should enable continued strong operating margin expansion in 2017 as management turns its attention to the recently acquired Westfalia Group (WFG). On that front, we highlight three keys items for investors. Reiterate Buy and $22PT . Q3’16 expectations and thoughts. HZN will report Q3 results and host a conference call on 11/2 at 8:30am ET . We model adjusted EBITDA of $14.4mn (vs. consensus of $14.9mn) and EPS of $0.25 (vs. consensus of $0.29) on revenues of $156.3mn (vs. consensus of $154.3mn).”

According to TipRanks.com, Koranda is a 2-star analyst with an average return of 0.4% and a 41.0% success rate. Koranda covers the Industrial Goods sector, focusing on stocks such as Clean Diesel Technologies, Capstone Turbine Corp., and Ballard Power Systems.

Horizon Global has an analyst consensus of Moderate Buy.

Horizon Global’s market cap is currently $362M and has a P/E ratio of 25.84. The company has a book value ratio of 26.2536.

Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of HZN in relation to earlier this year.

Horizon Global Corp. operates as a designer, manufacturer and distributor of custom-engineered towing, trailering, cargo management and other related accessory products on a global basis. It operates through Cequent Americas and Cequent APEA segments. The Cequent Americas segment manufactures and provides both aftermarket and original equipment manufacturer of towing, trailer, and accessories products, vehicle protection, and cargo management solutions serving the end-user through retailers, which focused on the North and South American markets. The Cequent APEA segment focuses its sales and manufacturing efforts in the Asia Pacific, Europe and Africa regions of the world. The company was founded on January 14, 2015 and is headquartered in Troy, MI.