Analysts’ Top Consumer Goods Picks: Engility Holdings (EGL), Adesto Technologies Corp (IOTS)

By Jason Carr

There’s a lot to be optimistic about in the Consumer Goods sector as 2 analysts just weighed in on Engility Holdings (NYSE:EGL) and Adesto Technologies Corp (NASDAQ:IOTS) with bullish sentiments.

Engility Holdings (EGL)

B.Riley FBR analyst Christopher Van Horn reiterated a Buy rating on Engility Holdings yesterday and set a price target of $38. The company’s shares opened today at $35.11, close to its 52-week high of $35.84.

Van Horn observed:

“We reiterate our Buy rating and 12-month price target of $38 on EGL shares. Our valuation is based on a DCF and reflects a FY19e EV/EBITDA multiple of 13.8x; for reference, a $40 takeout price would imply a ~14.3x FY19e EV/EBITDA multiple–we suspect this is likely the top end of what EGL could get in a sale.”

According to TipRanks.com, Horn is a 4-star analyst with an average return of 7.8% and a 58.2% success rate. Horn covers the Industrial Goods sector, focusing on stocks such as Superior Industries International, Park-Ohio Holdings, and American Axle.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Engility Holdings with a $34.83 average price target.

See today’s analyst top recommended stocks >>

Adesto Technologies Corp (IOTS)

In a report released today, Josh Nichols from B.Riley FBR reiterated a Buy rating on Adesto Technologies Corp, with a price target of $11. The company’s shares opened today at $6.15.

Nichols noted:

“Buy-rated Adesto Technologies (IOTS) announced on 6/29 that the company signed a definitive agreement to acquire Echelon Corporation (ELON) for $8.50/sh. The transaction reflects a $44M equity value and a $30M EV or 1.0x EV/Sales. ELON is a provider of open-standard networking and communication semiconductor solutions for connecting, monitoring, and controlling IoT devices for industrial applications. Specifically, ELON’s products lines include a family of IoT chips, modules, edge servers, as well as a technology platform that enables OEM’s to develop intelligent cloud-based analytics for industrial IoT applications such as manufacturing automation, transportation, and lighting controls.”

According to TipRanks.com, Nichols is a 5-star analyst with an average return of 33.9% and a 54.8% success rate. Nichols covers the Consumer Goods sector, focusing on stocks such as Pointer Telocation Ltd, Horizon Global, and Kemet Corp.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Adesto Technologies Corp with a $12 average price target.

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