B.Riley FBR Reiterates a Buy Rating on Tower International

By Ryan Adsit

B.Riley FBR analyst Christopher Van Horn reiterated a Buy rating on Tower International (NYSE: TOWR) today and set a price target of $40. The company’s shares closed yesterday at $27.30.

Van Horn observed:

“On February 13, TOWR reported 4Q17 results that exceeded our expectations and consensus figures. We think that the company is setting up well heading into 2018 as it has heavy exposure to North American light truck and SUVs including the high demand programs like F-150, Explorer, and Jeep Wrangler. The company also has a significant net new business backlog of $350M for 2018 through 2020 that we believe will support above-production revenue growth and potential margin expansion. The company guided revenue and adjusted EBITDA for FY18 above the consensus levels and generated over $100M in free cash flow in 2017, a significant number, in our view. We continue to think TOWR shares are attractive at these levels and we reiterate our Buy rating and $40 price target.”

According to TipRanks.com, Horn is a 4-star analyst with an average return of 8.9% and a 55.3% success rate. Horn covers the Consumer Goods sector, focusing on stocks such as Motorcar Parts Of America, Standard Motor Products, and Harman International.

Tower International has an analyst consensus of Moderate Buy, with a price target consensus of $40.

The company has a one-year high of $33.65 and a one-year low of $21. Currently, Tower International has an average volume of 86.71K.

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Tower International, Inc. manufactures engineered structural metal components and assemblies primarily serving automotive original equipment manufacturers. It offers its automotive customers a broad product portfolio, supplying body-structure stampings, frame and other chassis structures as well as complex welded assemblies for small and large cars, crossovers, pickups and sport utility vehicles. It also operates through two geographical segments: Americas and International. The company was founded in 1993 and is headquartered in Livonia, MI.