B.Riley FBR Keeps a Buy Rating on Ceco Environmental (CECE)

By Ryan Adsit

In a report released yesterday, Carter Driscoll from B.Riley FBR maintained a Buy rating on Ceco Environmental (CECEResearch Report), with a price target of $9.50. The company’s shares opened today at $7.15.

Driscoll said:

“This morning, March 7, CECO Environmental (CECE-Buy, $9.50 PT) delivered a strong 4Q18, generating revenues of $93.8M, up 27% Y/Y (and up 44% Y/Y excluding divestitures), adjusted EBITDA of $10.0M, up 104% Y/Y , and non-GAAP diluted EPS of $0.08, up $0.13 after posting a loss of $(0.05) in 4Q17. As we expected, CECE’s free cash flow rebounded strongly with the company delivering $17.1M in FCF in 4Q18 after posting a loss in 3Q18. The lone disappointment was that order growth fell Q/Q to $74.5M, partly due to some market disruptions with the U.S. government shutdown and falling crude prices but also some orders the company expected to close that did not and some competitive business the company did not win.”

According to TipRanks.com, Driscoll has currently no stars on a ranking scale of 0-5 stars, with an average return of -7.5% and a 33.8% success rate. Driscoll covers the Industrial Goods sector, focusing on stocks such as Ballard Power Systems, Amer Superconductor, and Fuelcell Energy.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Ceco Environmental with a $9.50 average price target, implying a 32.9% upside from current levels. In a report issued on February 26, Maxim Group also maintained a Buy rating on the stock with a $10 price target.

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The company has a one-year high of $9.18 and a one-year low of $4.05. Currently, Ceco Environmental has an average volume of 83.74K.

Based on the recent corporate insider activity of 19 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CECE in relation to earlier this year.

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CECO Environmental Corp. engages in the provision of engineering technology. It provides services in the field of environment, energy, fluid handling, and filtration. The company operates through the following segments: Environmental, Energy, and Fluid Handling & Filtration.