B.Riley FBR Thinks Superior Industries International’s Stock is Going to Recover

By Jason Carr

B.Riley FBR analyst Christopher Van Horn reiterated a Buy rating on Superior Industries International (NYSE: SUP) today and set a price target of $25. The company’s shares closed on Friday at $14.90, close to its 52-week low of $13.95.

Van Horn noted:

“While North American production headwinds are challenging and muting growth, we still think favorable industry dynamics, as well as positive implications from the company’s transformative acquisition of UNIWHEELS AG, should drive growth and shares higher from here. We are still cautious on the company’s profitability over the next 6 months as they integrate their acquisition and improve operations at various plants, namely Mexico. The company’s and the industry’s shift toward higher-complexity wheels appears to be putting near-term stress on margins, but better product mix is helping to offset these costs. We maintain our price target of $25 and think that as the company expands margins/completes acquisition integration, lower production rates, but doesn’t give them enough credit for European and aftermarket we could see additional upside.”

According to TipRanks.com, Horn is a 4-star analyst with an average return of 9.0% and a 63.6% success rate. Horn covers the Consumer Goods sector, focusing on stocks such as Motorcar Parts Of America, Standard Motor Products, and Harman International.

Superior Industries International has an analyst consensus of Moderate Buy, with a price target consensus of $25.

The company has a one-year high of $27.45 and a one-year low of $13.95. Currently, Superior Industries International has an average volume of 176.3K.

Based on the recent corporate insider activity of 28 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 SUP in relation to earlier this year.

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Superior Industries International, Inc. engages in the design and manufacture of aluminum road wheels for passenger cars and light-duty vehicles. It offers its products to original equipment manufacturers for the automotive industry. The firm supplies cast aluminum wheels with wheel manufacturing operations in the United States and Mexico.