Analysts Offer Insights on Services Companies: U.S. Auto Parts Network (NASDAQ: PRTS), Zagg Inc. (NASDAQ: ZAGG) and GP Strategies (NYSE: GPX)

By Jason Carr

Companies in the Services sector have received a lot of coverage today as analysts weigh in on U.S. Auto Parts Network (NASDAQ: PRTS), Zagg Inc. (NASDAQ: ZAGG) and GP Strategies (NYSE: GPX).

U.S. Auto Parts Network (NASDAQ: PRTS)

Roth Capital analyst Darren Aftahi reiterated a Buy rating on U.S. Auto Parts Network (NASDAQ: PRTS) yesterday and set a price target of $4.25. The company’s shares opened today at $2.82.

Aftahi noted:

“We expect continued private label growth (which was 12% this Q) to drive improved EBITDA, which we project to grow 15% in FY17.”

According to TipRanks.com, Aftahi is ranked 0 out of 5 stars with an average return of -7.0% and a 42.5% success rate. Aftahi covers the Technology sector, focusing on stocks such as Angie’s List Inc., Mitek Systems Inc, and Remark Media Inc.

U.S. Auto Parts Network has an analyst consensus of Moderate Buy.

Zagg Inc. (NASDAQ: ZAGG)

In a report released today, Dave King from Roth Capital reiterated a Hold rating on Zagg Inc. (NASDAQ: ZAGG), with a price target of $5.50. The company’s shares opened today at $5.90, close to its 52-week low of $4.71.

According to TipRanks.com, King is ranked 0 out of 5 stars with an average return of -14.2% and a 35.1% success rate. King covers the Consumer Goods sector, focusing on stocks such as Differential Brands Group, Performance Sports Group, and American Apparel Inc.

Zagg Inc. has an analyst consensus of Moderate Buy, with a price target consensus of $8.

GP Strategies (NYSE: GPX)

In a report released today, Jeff Martin from Roth Capital reiterated a Buy rating on GP Strategies (NYSE: GPX), with a price target of $32. The company’s shares opened today at $24.75.

Martin commented:

“We point to the clean fuels project with KNPC and the company’s focus on the pharmaceutical vertical as tangible near term drivers of improved financial performance. A resumption of the company’s acquisition strategy is another. We reiterate our Buy rating and $32 price target. Quick take: 3Q16 results were in line with consensus and modestly below our estimates, although foreign exchange impacted revenue and gross profit by $4.4mm and $600k, respectively . We anticipate 4Q16 will represent another down quarter y/y and point to the ramp of the $36mm, five-year contract in Kuwait and ramp of a large global pharmaceutical customer in 2017 as drivers of a return to organic growth next year. Management highlighted another acquisition is close to closing, and suggested deal size should increase next year.”

According to TipRanks.com, Martin is a 5-star analyst with an average return of 9.8% and a 52.4% success rate. Martin covers the Services sector, focusing on stocks such as Barrett Business Services, U.S. Auto Parts Network, and Franklin Covey Company.

GP Strategies has an analyst consensus of Moderate Buy, with a price target consensus of $32.