Author: cpereira@noblefcm.com

Bit Digital (BTBT) – April Production Numbers Released

Posted on by cpereira@noblefcm.com


Tuesday, May 07, 2024

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Bitcoin Mining. For the month of April, Bit Digital produced 119.3 BTC, a 12.5% decrease from last month’s 136.4 BTC. The decrease was primarily due to the reduction of bitcoin block rewards post-halving, which we believe we’ll continue to see a lower production rate until more miners are potentially up and running. The active hash rate was approximately 2.76 EH/s as of April 30, 2024, compared to 2.73 EH/s last month.

AI and ETH Staking. Bit Digital had 251 servers running on its AI contract and earned an estimated $4.1 million in unaudited revenue during the month. The Company had approximately 17,184 ETH actively staked in native staking compared to 3,008 ETH last month. This is due to the Company changing providers last month for its native staking solutions. The Company earned a blended APY of approximately 1.0% on its staked ETH position versus 2.8% last month, with the decrease due to the lag time in redeploying its staked ETH after changing providers.


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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Kelly Services (KELYA) – Announces Largest Acquisition in Company History

Posted on by cpereira@noblefcm.com


Monday, May 06, 2024

Kelly (Nasdaq: KELYA, KELYB) connects talented people to companies in need of their skills in areas including Science, Engineering, Education, Office, Contact Center, Light Industrial, and more. We’re always thinking about what’s next in the evolving world of work, and we help people ditch the script on old ways of thinking and embrace the value of all workstyles in the workplace. We directly employ nearly 350,000 people around the world and connect thousands more with work through our global network of talent suppliers and partners in our outsourcing and consulting practice. Revenue in 2021 was $4.9 billion. Visit kellyservices.com and let us help with what’s next for you.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Acquisition. Friday, Kelly Services announced the largest acquisition in Company History. Kelly is purchasing Motion Recruitment Partners LLC (MRP) for $425 million, with an additional earnout potential of up to $60 million. The acquisition significantly expands and strengthens Kelly’s scale and capabilities, in our view. The transaction will enhance the revenue growth potential and accelerate EBITDA margin expansion for Kelly.

Financing. Kelly expects to fund the purchase with debt and available capital, including the $100 million recently received from the sale of the European staffing business. At year-end, Kelly had $427 million of available liquidity, consisting of $126 million of cash and $301 million of availability under undrawn credit facilities. The transaction is expected to close in the second quarter of 2024.


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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

GoHealth, Inc. (GOCO) – Highlights from Noble Virtual Conference; Building Loyalty

Posted on by cpereira@noblefcm.com


Monday, May 06, 2024

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Noble Virtual Conference. On April 18, GoHealth CEO, Vijay Kotte, presented at Noble’s Virtual Healthcare Equity Conference. Mr. Kotte discussed several important topics, including GoHealth’s consumer-centric Medicare policy platform, additional revenue opportunities, and the company’s large addressable market. The presentation replay is available here.

Built for purpose technology. Mr. Kotte highlighted the company’s process of using proprietary technology together with its licensed agents to make recommendations for consumers based on their unique needs. Notably, individual Medicare consumers have 40-50 plan options on average, making the company’s machine learning technology an important tool in narrowing down the options to the best available.


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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Cumulus Media (CMLS) – Advertising Remains Choppy

Posted on by cpereira@noblefcm.com


Monday, May 06, 2024

Cumulus Media (NASDAQ: CMLS) is an audio-first media company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. Cumulus Media engages listeners with high-quality local programming through 406 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across more than 9,500 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Q1 results. The company reported revenue of $200.5 million, which was in-line with our estimate of $200.0 million. Adj. EBITDA in the quarter was $8.4 million, in line with our estimate of $8.0 million. Notably, the company announced the completion of its favorable debt swap, which should alleviate near term refinancing concerns for investors.

Solid digital results. Notably, in Q1 the company’s digital segment grew revenue by 7% from the prior year period. The digital revenue growth was largely attributed to its digital marketing services business, which increased revenue by 25% from the year earlier period. 


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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

ACCO Brands (ACCO) – Overcoming Top-Line Weakness, But Tempering Expectations for 2024

Posted on by cpereira@noblefcm.com


Monday, May 06, 2024

ACCO Brands Corporation is one of the world’s largest designers, marketers and manufacturers of branded academic, consumer and business products. Our widely recognized brands include AT-A-GLANCE®, Esselte®, Five Star®, GBC®, Kensington®, Leitz®, Mead®, PowerA®, Quartet®, Rapid®, Rexel®, Swingline®, Tilibra®, and many others. Our products are sold in more than 100 countries around the world. More information about ACCO Brands, the Home of Great Brands Built by Great People, can be found at www.accobrands.com.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Segments. Americas revenue decreased 14.3% to $197.2 million, with comp sales down 15.3%. Segment adjusted operating income declined to $12.3 million from $18.7 million. International revenues fell 6.3% to $172.6 million, with comp sales off 5.9%. Adjusted operating income was $16.9 million versus $17.5 million in 1Q23.

Factors. Both segments experienced softness in consumer and business demand for office and computer categories. Americas also felt the impact from the exit of lower margin business while International benefitted from price increases. Although computer sales are still soft, the rate of decline is moderating.


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

SelectQuote (SLQT) – Highlights from Noble Virtual Conference; Synergistic Business Model Driving Favorable Growth

Posted on by cpereira@noblefcm.com


Friday, May 03, 2024

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Noble Virtual Conference. On April 17, management presented at Noble’s Virtual Healthcare Equity Conference. Management highlighted several key attributes of the company, such as its strong customer acquisition capabilities, synergistic business model, and long history of serving American consumers, among others.

Understanding the customer. Through its licensed agents, SelectQuote has roughly 30k conversations per day with American seniors, resulting in deep insights into the needs of American consumers, such as Medicare beneficiaries. This allows the company to refine its offerings in ways that add value for customers and lead to return customers.


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

MustGrow Biologics Corp. (MGROF) – A Step Towards Revenue Generation

Posted on by cpereira@noblefcm.com


Friday, May 03, 2024

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

A Distribution Agreement. Yesterday, MustGrow Biologics announced an exclusive distribution agreement with G.S. Long Co., Inc. for MustGrow’s TerraSante biofertility product in Oregon and Washington State. We view this as the next step in revenue generation for the Company, with meaningful revenue now on the horizon for 2025.

Who Is G.S. Long? G.S. Long is a family-owned and operated agricultural chemical and fertilizer retailer headquartered in Central Washington with additional branches located in both Washington and Oregon State. The firm has deep crop consultant capabilities, including experience with biologics, representing generational grower relationships. G.S. Long has over 40 state-licensed Crop Advisors providing a variety of full-service consulting to its farming customers.


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Haynes International (HAYN) – Proposed Merger with North American Stainless Receives Scrutiny in Austria

Posted on by cpereira@noblefcm.com


Friday, May 03, 2024

Haynes International, Inc. is a leading developer, manufacturer and marketer of technologically advanced, nickel and cobalt-based high-performance alloys, primarily for use in the aerospace, industrial gas turbine and chemical processing industries.

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Merger proposal receives scrutiny in Austria. The Austrian Federal Competition Authority (AFCA) is of the opinion that the proposed merger between Haynes International and North American Stainless, Inc., a wholly owned subsidiary of Acerinox S.A., should not receive clearance in its current form but should be subjected to a detailed examination by the Austrian Cartel Court. The AFCA filed an application with the Austrian Cartel Court for a Phase II in-depth examination. Like Haynes, Acerinox is active in the field of specialty alloys through its VDM Metals subsidiary.

What is the problem? Based on the release, the AFCA is concerned that the merger would further strengthen Acerinox’s market position in the nickel alloy products sector which could have a negative impact on competition and lead to higher prices.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

DLH Holdings (DLHC) – In a Better Environment

Posted on by cpereira@noblefcm.com


Friday, May 03, 2024

DLH delivers improved health and readiness solutions for federal programs through research, development, and innovative care processes. The Company’s experts in public health, performance evaluation, and health operations solve the complex problems faced by civilian and military customers alike, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,300 employees dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to public health to improve the lives of millions. For more information, visit www.DLHcorp.com.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Government Budgets. With the budgets for the 2024 fiscal year passed, DLH is prepared to capitalize on the expected increased bidding environment, in our view. The Company has roughly $500 million in outstanding bids, and we expect to see awards to be announced throughout the fiscal year.

Increasing Cash Flow. The Company generated $10.3 million in cash from operations year-to-date, above 2023’s cash generation of $6.9 million. The result is from an improvement in the Company’s Day Sales Outstanding, which improved to 50 days from 61 days last year. Improved cash collections corresponds to quicker debt reduction, in our view.


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

AdTheorent (ADTH) – Fundamentals Appear Favorable

Posted on by cpereira@noblefcm.com


Friday, May 03, 2024

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Q1 results in line. The company reported Q1 revenue of $34.9 million, in line with our forecast of $35.0 million. Adj. EBITDA for the quarter was $0.2 million, compared with our forecast of $0.5 million as illustrated in Figure #1 Results. Notably, total customers in the quarter increased 95% over the prior year period. 

Definitive merger agreement. On April 1, 2024, the company announced it had entered into a definitive merger agreement to be acquired by privately held Cadent, LLC, a subsidiary of Novacap, for $324 million. The merger is an all cash transaction at $3.21 per share. Notably, the merger agreement includes a 33-day go-shop period, which allows the company to solicit alternative acquisition proposals until its expiration at 11:59 pm ET on May 4. 


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

ACCO Brands (ACCO) – Top Line Headwinds Impact 1Q24 Results

Posted on by cpereira@noblefcm.com


Friday, May 03, 2024

ACCO Brands Corporation is one of the world’s largest designers, marketers and manufacturers of branded academic, consumer and business products. Our widely recognized brands include AT-A-GLANCE®, Esselte®, Five Star®, GBC®, Kensington®, Leitz®, Mead®, PowerA®, Quartet®, Rapid®, Rexel®, Swingline®, Tilibra®, and many others. Our products are sold in more than 100 countries around the world. More information about ACCO Brands, the Home of Great Brands Built by Great People, can be found at www.accobrands.com.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Overview. ACCO continues to see persistent consumer and business spending weakness, impacting top line revenue. However, the previously announced $60 million cost reduction program enabled the Company to grow gross margin by 120 basis points y-o-y. Management is exploring additional initiatives given the weaker than expected operating environment.

Results. Revenue declined 10.9% y-o-y to $358.9 million. Management had expected a 6.5%-8% decline. Comp sales fell 11.3%, while favorable forex added 0.4%. Adjusted operating income was $16.2 million versus $24.3 million in 1Q23. GAAP net loss was $6.3 million, or $0.07/sh, compared to a net loss of $3.7 million, or $0.04/sh, last year. Adjusted EPS was $0.03 in 1Q24, compared to $0.09/sh last year. We had forecast revenue of $370 million, a GAAP loss of $8.8 million, or a loss of $0.09/sh, and adjusted EPS of $0.01.


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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

1·800·Flowers.com, Inc. (FLWS) – Further Margin Improvement Appears Possible

Posted on by cpereira@noblefcm.com


Friday, May 03, 2024

For more than 45 years, 1-800-Flowers.com has offered truly original floral arrangements, plants and unique gifts to celebrate birthdays, anniversaries, everyday occasions, and seasonal holidays, and to deliver comfort during times of grief. Backed by a caring team obsessed with service, 1-800-Flowers.com provides customers thoughtful ways to express themselves and connect with the most important people in their lives. 1-800-Flowers.com is part of the 1-800-FLOWERS.COM, Inc. family of brands. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Solid Q3 results. For Q3, the company reported revenue of $379.4 million, in-line with our estimate of $379.4 million. While revenues were down nearly $40 million year over year, the seasonal adj. EBITDA loss of $5.7 million was modestly better year over year. Notably, Q3 gross profit margins increased 300 basis points. The improved gross profit margin was driven by lower freight and commodity costs.

Improving revenue trends. While revenue trends are not recovering as fast as we originally hoped, there is substantial sequential quarterlyimprovement in ecommerce revenue, which was down 12% in Q1, down 6.6% in Q2 and a more moderate decrease of 4.9% in Q3. We expect that revenues will further moderate in fiscal Q4.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Great Lakes Dredge & Dock (GLDD) – New Credit Facility Provides Flexibility and Optionality

Posted on by cpereira@noblefcm.com


Thursday, May 02, 2024

Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States. In addition, Great Lakes is fully engaged in expanding its core business into the rapidly developing offshore wind energy industry. The Company has a long history of performing significant international projects. The Company employs experienced civil, ocean and mechanical engineering staff in its estimating, production and project management functions. In its over 131-year history, the Company has never failed to complete a marine project. Great Lakes owns and operates the largest and most diverse fleet in the U.S. dredging industry, comprised of approximately 200 specialized vessels. Great Lakes has a disciplined training program for engineers that ensures experienced-based performance as they advance through Company operations. The Company’s Incident-and Injury-Free® (IIF®) safety management program is integrated into all aspects of the Company’s culture. The Company’s commitment to the IIF® culture promotes a work environment where employee safety is paramount.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

New Credit Agreement. Last week, Great Lakes entered into an $150 million 5-year, senior secured second-lien credit agreement with Guggenheim Credit Funding, LLC. The new agreement provides the Company with flexibility to fund its new vessel build out program as well as optionality on borrowing, although the interest rate is higher than the existing debt.

Use of Funds. The Company borrowed $100 million under the agreement on the closing date, which was used to repay amounts outstanding under the existing ABL. Great Lakes has the option to draw an additional $50 million for a period of 12 months following the closing date of the initial loan. The optional $50 million, if drawn, will be used to fund future new build payments, ongoing working capital, and other general corporate purposes.


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