Industrial Archives - Page 2 of 27

Seanergy Maritime (SHIP) – Definitive Agreements to Acquire Two New Vessels

Posted on January 29, 2025January 29, 2025 by cpereira@noblefcm.com

Wednesday, January 29, 2025

Seanergy Maritime Holdings Corp. is a prominent pure-play Capesize shipping company listed in the U.S. capital markets. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. The Company’s operating fleet consists of 18 vessels (1 Newcastlemax and 17 Capesize) with an average age of approximately 13.4 years and an aggregate cargo carrying capacity of approximately 3,236,212 dwt. Upon completion of the delivery of the previously announced Capesize vessel acquisition, the Company’s operating fleet will consist of 19 vessels (1 Newcastlemax and 18 Capesize) with an aggregate cargo carrying capacity of approximately 3,417,608 dwt. The Company is incorporated in the Marshall Islands and has executive offices in Glyfada, Greece. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP”.

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

Hans Baldau, Research Associate, Noble Capital Markets, Inc.

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

Fleet expansion. Seanergy entered into two definitive agreements, one for purchasing a Newcastlemax vessel and the other for a bareboat charter with a purchase obligation for a Capesize vessel. The total acquisition cost is approximately $69.0 million and will be funded with cash and proceeds from credit facilities. Following the purchases, Seanergy’s fleet will consist of 21 vessels with an aggregate cargo-carrying capacity of 3,803,918 deadweight tons (dwt). Both vessels are expected to be delivered within the first quarter of 2025.

Vessel details. The Newcastlemax vessel, to be named “Meiship”, was built in 2013 and has cargo capacity of 207,851 dwt. The Capesize vessel, to be named “Blueship”, was built in 2011 and has a capacity of 178,459 dwt. Pursuant to a six-month bareboat charter, Seanergy advanced a down payment of $4.0 million and will pay an additional $4.0 million upon delivery of the vessel. Seanergy will pay the owner a daily rate of $9,750 per day during the six-month charter period and earn revenue based on the Baltic Capesize Index (BCI). At the end of the six-month charter period, Seanergy is obligated to purchase the vessel for $22.5 million.

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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.

Kratos Defense & Security (KTOS) – Raising Price Target

Posted on January 28, 2025January 28, 2025 by cpereira@noblefcm.com

Tuesday, January 28, 2025

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and fields transformative, affordable technology, platforms, and systems for United States National Security related customers, allies, and commercial enterprises. Kratos is changing the way breakthrough technologies for these industries are rapidly brought to market through proven commercial and venture capital backed approaches, including proactive research, and streamlined development processes. At Kratos, affordability is a technology, and we specialize in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, training and combat systems and next generation turbo jet and turbo fan engine development. For more information go to www.kratosdefense.com.

Joe Gomes, CFA, 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.

Raising Price Target. We are maintaining our Outperform rating but raising our price target on KTOS shares to $38 from a prior $30. KTOS shares have performed well since we raised our price target to $30 in mid-November and have spent the last two weeks above our old target. We remain positive on the growth potential for Kratos, both on the defense and commercial sides.

Drivers. We continue to believe KTOS shares benefit from investor belief in the Trump Administration’s determination to increase defense spending and allocate more dollars to areas in Kratos’ wheelhouse, such as unmanned systems, hypersonics, and space. We also expect less friction from a drawn-out continuing resolution.

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

NN, Inc. (NNBR) – A First Look at 2025

Posted on January 23, 2025January 23, 2025 by cpereira@noblefcm.com

Thursday, January 23, 2025

Joe Gomes, CFA, 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.

Corporate Presentation. Yesterday, NN management presented at an investment conference. Among the topics discussed were the enterprise transformation, tariffs, balance sheet transformation, M&A, and the five-year growth plan. Management also introduced 2025 guidance.

Transformation Plan and Tariffs. The transformation plan continues to move forward. Notably, management indicated that all plants will be profitable in 2025, with a new focus on improving below average performing plants. Management does not expect the proposed Trump tariffs to impact business negatively as the vast majority of products are consumed in the country in which they are produced. Management did note recent inquiries from potential customers seeking capacity to produce products in the U.S. that customers had previously purchased overseas.

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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).

Great Lakes Dredge & Dock (GLDD) – Options for the Acadia, if Needed

Posted on January 23, 2025January 23, 2025 by cpereira@noblefcm.com

Thursday, January 23, 2025

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, CFA, 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.

Executive Order. Monday, President Trump signed an Executive Order for the temporary withdrawal of all areas on the Outer Continental Shelf (OCS) from offshore wind leasing as well as a review of the federal government’s leasing and permitting practices for wind projects. This withdrawal temporarily prevents consideration of any area in the OCS for any new or renewed wind energy leasing for the purposes of generation of electricity or any other such use derived from the use of wind.

Impact on GLDD. Notably, nothing in the withdrawal affects rights under existing leases in the withdrawn areas. However, the President has directed the Secretary of the Interior to comprehensively review the ecological, economic, and environmental necessity of terminating or amending any existing wind energy leases. Great Lakes’ two existing projects, Empire Wind and Sunrise Wind, have already undergone extensive governmental review and, presumably, should go forward.

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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).

Euroseas (ESEA) – Vessel Sale Adds a New Wrinkle to the Proposed Euroholdings Ltd. Spin-Off

Posted on January 21, 2025January 21, 2025 by cpereira@noblefcm.com

Tuesday, January 21, 2025

Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 140 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA. Euroseas operates in the container shipping market. Euroseas’ operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements.

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

Hans Baldau, Research Associate, Noble Capital Markets, Inc.

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

Sale of the M/V Diamantis P. A wholly owned subsidiary of Euroseas sold the M/V Diamantis P for ~$13.2 million and delivered the vessel to its new owners on January 15. Recall that the Diamantis P is a feeder containership that was built in 1998. The transaction is expected to result in a gain on sale of ~$10.2 million.

Spin-off transaction. Recall that Euroseas announced its intention to spin off three of its subsidiaries, two owning the M/V Aegean Express and M/V Joanna, and one that owned the M/V Diamantis P (prior to its sale) into Euroholdings Ltd. In exchange, Euroseas will receive 100% of the shares of Euroholdings Ltd., which will then be distributed to its shareholders (please refer to our note dated January 3 for transaction details).

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SKYX Platforms (SKYX) – A Step Forward for Its Commercial Distribution Channel

Posted on January 16, 2025January 16, 2025 by cpereira@noblefcm.com

Thursday, January 16, 2025

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.

Commercial expansion. On January 15th, the company announced that it will begin supplying its products to real estate developer Jeremiah Baron Companies. The developer has mixed-use residential and commercial projects underway in Florida. The partnership is expected to encompass approximately 1,000 units, which we believe equates to roughly 30,000 receptacles.

Seeding for the future. The company will initially supply receptacles to the developer, followed by plug-in products in the later stages of development, such as chandeliers, ceiling fans, and others. Importantly, the company’s fixtures, which plug into the receptacles, sell at higher prices. As such, we expect initial revenue impacts from the partnership to be modest, followed by a more meaningful impact when the units are ready for the installation of plug-in products. We anticipate that the development of the mixed-use project will extend into 2026.

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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).

NN, Inc. (NNBR) – Another Year of Record-Setting New Business Wins

Posted on January 15, 2025January 15, 2025 by cpereira@noblefcm.com

Wednesday, January 15, 2025

Joe Gomes, CFA, 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 Business Wins. NN reported full-year 2024 new business wins of $73 million, exceeding the high end of the Company’s guidance. This is the second consecutive year of record annualized new business wins, up from the previous record of $63 million in 2023. The new wins were in key focus areas such as vehicle control, energy efficiency, electrical grid components, and medical components.

Driving to the Five-Year Goal. With another record year of new business wins, NN remains on track to meet its five-year goal of $325 million in new business wins, which will, in turn, be a key driver in the Company’s organic growth to $600 million in sales. Notably, we expect management to also seek inorganic growth opportunities, especially in the medical and electrical segments, to drive the five-year revenue goal even higher.

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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).

Kratos Defense & Security (KTOS) – Award Momentum Continues

Posted on January 10, 2025January 10, 2025 by cpereira@noblefcm.com

Friday, January 10, 2025

Joe Gomes, CFA, 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.

Award Momentum. Hot on the heels of announcing the largest award in Company history, Kratos Defense & Security received two more awards totaling over $107 million. The two new awards continue the award momentum for Kratos, in our view, and suggest a solid growth opportunity for the Company in 2025.

Geolocation Services. Kratos was awarded a Geolocation Global Support Services (GGSS) contract in the amount of $48 million. The Company will provide support services to Space Forces Space electromagnetic interference managers and supporting elements with EMI resolution services. Notably, this award takes advantage of Kratos’ internally funded and constructed, one-of-a-kind, worldwide Space Domain Awareness network.

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DLH Holdings (DLHC) – A New Award

Posted on January 10, 2025January 10, 2025 by cpereira@noblefcm.com

Friday, January 10, 2025

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, CFA, 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 Contract. On Monday, DLH was awarded a new Governmentwide Acquisition Indefinite Delivery/Indefinite Quantity contract through the One Acquisition Solution for Integrated Services (OASIS+). OASIS+ is a multi-billion dollar expansive suite program used by various federal agencies such as the Defense Health Agency, CDC, and the DoD, and is expected to grow in usage over the next few years.

Details. Through the contract, DLH will deliver complex professional services and advanced capabilities to various federal agencies. DLH won all five domains for which the Company submitted a bid, including Research and Development Services, Technical and Engineering Services, Intelligence Services and Solutions, Logistics Services and Solutions, and Management and Advisory Services. As a prime awardee of the contract, the base period is five years, with one option for an additional five.

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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).

AZZ, Inc. (AZZ) – Well-Positioned for Sales Growth and Margin Expansion; Increasing Estimates

Posted on January 10, 2025January 10, 2025 by cpereira@noblefcm.com

Friday, January 10, 2025

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.

Third quarter financial results. For the fiscal year (FY) 2025, AZZ reported third quarter adjusted net income of $41.9 million or $1.39 per share compared to $34.8 million or $1.19 per share during the prior year period and our estimate of $37.7 million or $1.25 per share. Compared to the prior year period, sales increased 5.8% to $403.6 and exceeded our estimate of $398.5 million. AZZ generated a 24.2% gross margin as a percentage of sales compared to 23.1% during the prior year period and our estimate of 23.3%. Adjusted EBITDA increased 5.0% to $90.7 million, above our estimate of $86.1 million, representing 22.5% of sales versus 22.6% of sales during the third quarter of FY 2024.

Updating estimates. We have increased our 2025 EBITDA and EPS estimates to $351.6 million and $5.23, respectively, from $346.8 million and $5.05. Our 2026 EBITDA and EPS estimates have been raised to $372.6 million and $5.77, respectively, from $371.5 million and $5.70. Our revised estimates are largely due to changes in sales growth and gross margin assumptions. The company is expected to provide guidance for FY 2026 in early February.

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V2X (VVX) – Term Loan Repriced; Shares Attractive

Posted on January 8, 2025January 8, 2025 by cpereira@noblefcm.com

Wednesday, January 08, 2025

For more than 70 years, Vectrus has provided critical mission support for our customers’ toughest operational challenges. As a high-performing organization with exceptional talent, deep domain knowledge, a history of long-term customer relationships, and groundbreaking technical expertise, we deliver innovative, mission-matched solutions for our military and government customers worldwide. Whether it’s base operations support, supply chain and logistics, IT mission support, engineering and digital integration, security, or maintenance, repair and overhaul, our customers count on us for on-target solutions that increase efficiency, reduce costs, improve readiness, and strengthen national security. Vectrus is headquartered in Colorado Springs, Colo., and includes about 8,100 employees spanning 205 locations in 28 countries. In 2021, Vectrus generated sales of $1.8 billion. For more information, visit the company’s website at www.vectrus.com or connect with Vectrus on Facebook, Twitter, and LinkedIn.

Joe Gomes, CFA, 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.

Term Loan. V2X successfully repriced its $900 million First Lien Term Loan at 2.25%, a 50 basis point reduction in the interest margin. The interest margin reduction represents approximately $4.5 million of annual interest expense savings. The repricing continues a series of actions that have reduced the cost and outstanding debt. We would remind investors that the Company’s goal was to achieve a net leverage ratio of 3.0x or below by the end of 2024.

Shares Attractive. With VVX shares down from the $68 level just prior to the November 12th stock sale by AIP, we believe the current price represents an attractive risk/reward opportunity. The shares have been pressured by the AIP sale, as well as concerns about the future growth rate of Defense spending, especially given the DOGE focus. We believe these concerns are overblown.

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Euroseas (ESEA) – Thoughts on Euroseas Planned Spin-Off

Posted on January 8, 2025January 8, 2025 by cpereira@noblefcm.com

Wednesday, January 08, 2025

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

Hans Baldau, Research Associate, Noble Capital Markets, Inc.

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

Planned spin-off of older vessels. On January 7, Euroseas held an investor call to discuss its planned spin off the company’s three older vessels into a separate company, Euroholdings Ltd., which has applied for a listing on the NASDAQ Capital Market. The three unlevered vessels include M/V Aegean Express, M/V Diamantis P, and M/V Joanna. In exchange for contributing the three vessels, Euroseas will receive 100% of the shares of Euroholdings, which will then be distributed to its shareholders.

Euroseas to modernize its fleet. Following the spin-off, Euroseas will own 22 vessels, including 15 feeder and 7 intermediate containerships with 2 under construction. Euroseas will be positioned to expand its fleet of modern, eco-friendly containerships, with the goal of becoming a significant competitor in the feeder/intermediate containership segment. A modern and fuel-efficient fleet should command premium rates and longer contracts resulting in greater profitability and earnings visibility.

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AZZ, Inc. (AZZ) – Third Quarter Financial Results Exceed Expectations

Posted on January 8, 2025January 8, 2025 by cpereira@noblefcm.com

Wednesday, January 08, 2025

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.

Debt reduction. During the first nine months of FY 2025, AZZ generated operating cash flow of $185.6 million and reduced debt by $80 million and expects full year debt reduction to exceed $100 million. At quarter end, the company’s net leverage was 2.6 times trailing twelve months EBITDA, and cash and cash equivalents amounted to $1.5 million.

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