B.Riley FBR Reiterates a Buy Rating on HC2 Holdings

By Carrie Williams

In a report released today, Sarkis Sherbetchyan from B.Riley FBR reiterated a Buy rating on HC2 Holdings (NYSE: HCHC), with a price target of $11.50. The company’s shares closed yesterday at $5.10.

Sherbetchyan commented:

“Buy-rated HC2 Holdings (HCHC; $11.50 PT) reports 4Q17 (Dec) results after market close on Wednesday, March 14, and will host its EPS call at 5:00PM ET (dial-in 866-395-3893; ID: 3278987). We outline our 4Q17 expectations for HCHC’s core operating subsidiaries in Exhibit I: Segment Level Estimates on page 3 of this report, which includes the primary generators of EBITDA (the construction, marine services, telecom, and energy segments). We are the only analyst with published estimates. We admit HCHC’s segments are difficult to model and bumpy when viewed from a quarterly lens due to the large, complex nature of its undertakings. Remember: last quarter’s operating results from the construction segment were below our model due to project timing. Despite these oscillations, we find comfort in the expanding backlogs for both HCHC’s construction and marine services segments.”

According to TipRanks.com, Sherbetchyan is a 4-star analyst with an average return of 16.1% and a 71.0% success rate. Sherbetchyan covers the Technology sector, focusing on stocks such as Intralinks Holdings, MAM Software Group, and Carbonite Inc.

HC2 Holdings has an analyst consensus of Moderate Buy, with a price target consensus of $11.50.

Based on HC2 Holdings’ latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $406 million and GAAP net loss of $5.97 million. In comparison, last year the company earned revenue of $454 million and had a GAAP net loss of $61.46 million.

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HC2 Holdings, Inc. engages in the acquisition and investment activities. It operates through following business segments: Manufacturing, Marine Services, Insurance, Telecommunications, Utilities, Life Sciences, and Other. The Manufacturing segment is a structural steel fabricator and erector in the United States.