Tower International Gets a Buy Rating from FBR Capital

By Ryan Adsit

FBR Capital 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 opened today at $22.45.

Van Horn observed:

“We recently traveled with TOWR’s management team; our opinion regarding shares remains positive. While TOWR does not make autonomous sensors or “infotainment” systems, it does have significant sources of secular growth, for which the stock does not get credit. This is not a traditional “metal bender,” as the market would like to believe: This is an engineered-products and manufacturing company providing value-add work that its OEM customers are clearly shifting away from doing in-house. We see three main growth themes: (1) OEMs contracting expert suppliers, such as TOWR, to provide lighter-weight body structures, mostly through increased application of aluminum; (2) OEMs increasingly outsourcing body-in- white and chassis to suppliers, which, we think, could lead outsourcing to account for 49% of total body-in-white and chassis content in 2025, up from just 42% in 2015; (3) TOWR winning new content on existing platforms. Overall, we continue to find the story quite compelling and believe shares are positioned to make gains.”

According to TipRanks.com, Horn is a 4-star analyst with an average return of 10.0% and a 59.8% success rate. Horn covers the Consumer Goods sector, focusing on stocks such as Standard Motor Products, Harman International, and Methode Electronics.

Tower International has an analyst consensus of Moderate Buy, with a price target consensus of $34.50.

The company has a one year high of $30.50 and a one year low of $19.19. Currently, Tower International has an average volume of 146.4K.

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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.