Analysts Offer Insights on Consumer Goods Companies: Telenav (NASDAQ: TNAV), Farmer Brothers Company (NASDAQ: FARM) and G-III Apparel Group (NASDAQ: GIII)

By Jason Carr

Analysts have been eager to weigh in on the Consumer Goods sector with new ratings on Telenav (TNAVResearch Report), Farmer Brothers Company (FARMResearch Report) and G-III Apparel Group (GIIIResearch Report).

Telenav (TNAV)

In a report released today, Josh Nichols from B.Riley FBR maintained a Buy rating on Telenav, with a price target of $7.50. The company’s shares closed last Monday at $5.79.

Nichols noted:

“Telenav (TNAV $7.50 PT) shares traded down 45% (vs. and were halted in intraday trading (pending additional news) after General Motors (GM) announced plans to introduce new in-vehicle technology that features voice assistant, embedded navigation, and in-vehicle applications provided by Google. GM plans to commence integration of Google technology, including Cadillac infotainment systems in 2021 with a broader rollout into remaining GM brands in the subsequent years. Recall, GM accounted for $41M of revenue and $54M or 19% of the company’s $281M of billings in FY19 (Jun) while Ford accounted for 50% or of billings.”

According to TipRanks.com, Nichols is a 4-star analyst with an average return of 13.0% and a 41.0% success rate. Nichols covers the Consumer Goods sector, focusing on stocks such as Adesto Technologies Corp, Pointer Telocation Ltd, and Horizon Global.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Telenav with a $7.75 average price target.

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Farmer Brothers Company (FARM)

In a report released today, Kara Anderson from B.Riley FBR maintained a Hold rating on Farmer Brothers Company, with a price target of $21. The company’s shares closed last Monday at $12.52, close to its 52-week low of $10.65.

Anderson commented:

“Neutral-rated Farmer Brothers (FARM, $21 PT) will report F4Q19 and FY19 (June) results after market close on and hold a conf. call at 5:00PM ET accessible by dialing 844.423.9890 with passcode 7019529. We model F4Q19 revenue of $147.8 million and adjusted EBITDA of $7.2 million compared to consensus $144.3 million and $6.4 million and implied F4Q adjusted EBITDA guidance between $6-$8 million. Given FARM’s recent miss and our limited visibility into F4Q, we are comfortable with consensus positioning below our model. With FARM failing to achieve recent growth objectives, we remain sidelined into the print despite the ~30% negative move in shares since we downgraded the stock on May 8, 2019 (vs. the S&P 500 up 3%).”

According to TipRanks.com, Anderson is ranked #1131 out of 5540 analysts.

The word on The Street in general, suggests a Hold analyst consensus rating for Farmer Brothers Company.

G-III Apparel Group (GIII)

In a report released today, Susan Anderson from B.Riley FBR reiterated a Buy rating on G-III Apparel Group, with a price target of $33. The company’s shares closed last Monday at $23.84.

Anderson observed:

“G-III Apparel Group (GIII) reported 2Q adj. EPS of $0.23, vs. B. Riley FBR/consensus estimates of $0.23/$0.22, driven by a +3.1% increase in sales (vs. B. Riley FBR/consensus +5.7%/+5.0%). 2Q GM compressed –107 bps (vs. B. bps/–77 bps), driven by about –60 bps of deleverage in wholesale operations and about –10 bps of deleverage in retail margins. Additionally, about –50 bps of GM deleverage was cause by the lower penetration of retail sales, which generally carry a higher GM rate. See additional details in our First Look note here. Management guided 3Q19 adj. EPS to $1.87–$1.97, vs. B. on revenue of +9.3%, vs. B. Riley FBR/consensus of +8.3%/+7.1%.”

According to TipRanks.com, Anderson is a 1-star analyst with an average return of -1.0% and a 40.4% success rate. Anderson covers the Consumer Goods sector, focusing on stocks such as Lululemon Athletica Inc, Turning Point Brands, and Columbia Sportswear.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for G-III Apparel Group with a $25 average price target, representing a 15.2% upside. In a report issued on September 3, Needham also maintained a Buy rating on the stock with a $34 price target.

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