Tag: Industrial

Great Lakes Dredge & Dock (GLDD) – Strong Environment; Raising PT to $14

Posted on by cpereira@noblefcm.com


Monday, September 23, 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, 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 PT. We are raising our price target to $14 from a prior $11 and maintaining our Outperform rating on GLDD shares. We believe the strong operating environment-as evidenced by the new awards announced Friday-will continue, providing upside to operating results, in our view. At our new PT, GLDD shares would trade at 1.7x projected 2024 revenue and 9.8x adjusted EBITDA, compared to a peer group which trades at 1.5x and 11.4x, respectively.

New Awards. On Friday, the DOD announced Great Lakes had been awarded just under $300 million of new business, including a $219 million award for the Sabine-Neches Waterway Channel Improvement Project. The new awards will be additive to backlog, are higher margin work, and highlight not only the amount of work available but Great Lakes’ ability to win such available work.


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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 by cpereira@noblefcm.com


Tuesday, September 17, 2024

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. With KTOS shares hitting our prior $22 price target, we are raising our price target to $26. We are maintaining our Outperform rating on the shares. We view the recent awards and demonstrations as further confirmation of the Kratos strategy in providing leading edge disruptive technology products and systems.

CR Concern. Although we remain confident in the long-term success of the Company, the potential for another extended Continuing Resolution remains a concern in the near-term. The Federal government’s fiscal year ends September 30th and we do not expect a 2025 budget to be passed before then. The concern is for an extended CR, like we had in fiscal 2024, which pushes new awards and contracts to the right.


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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. 

FreightCar America (RAIL) – Raising Price Target Based on Expected Lower Cost of Capital

Posted on by cpereira@noblefcm.com


Monday, September 16, 2024

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.

Pure play manufacturer. FreightCar America, Inc. is a diversified manufacturer of railroad cars and rail car components. The company designs and manufactures a broad variety of railroad car types for the transportation of bulk commodities and containerized freight products primarily in North America. The company recently reported strong second-quarter financial results and appears poised for greater scale and margin expansion as it increases its market share and expands its product suite.

Expected redemption of high-cost preferred stock. We have assumed the company could redeem its high-cost preferred shares using a private credit term loan. For the sake of simplicity, we have assumed this occurs just prior to 2025. Based on the company’s strong cash flow profile and outlook, we estimate the rate on a $100 million private credit term loan could approximate the secured overnight financing rate (SOFR) plus 600 basis points or 11.33%. We note that the amount of the term loan and the interest rate could vary from our estimates. If the loan amount or interest rate is lower, interest expense could be lower. 


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V2X (VVX) – American Industrial Partners Lightens Its Holdings

Posted on by cpereira@noblefcm.com


Wednesday, September 11, 2024

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.

A Sale. Last week, V2X announced an offering of 2 million shares, with an additional 300,000 shares potentially sold, at $48/sh by American Industrial Partners. AIP will continue to beneficially own approximately 54.4% of the outstanding common stock, or 16,967,286 shares (or approximately 53.4% if the underwriters exercise their option to purchase additional shares in full). Noble Capital was a co-manager of the offering. V2X did not receive any proceeds from the share sale.

Expected. AIP received its shares in the Vectrus/Vertex merger, and we had expected AIP eventually to begin to sell off its stake. V2X shares reacted negatively to the announcement, declining from the $54 level prior to the announcement to the current $49 level. We believe the sell-off to be unwarranted given V2X’s strong operating performance and AIP’s still substantial holdings in V2X shares.


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NN Inc. (NNBR) – Some Additional Flexibility

Posted on by cpereira@noblefcm.com


Tuesday, September 03, 2024

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.

Flexibility. On Friday, NN filed an 8-K disclosing some amendments to its term loan and ABL agreements. In essence, the amendments to each will provide the Company with additional financial flexibility, in our view. While there does not appear to be any change in interest rates, a reduction in rates is a long-term goal of management.

Term Loan. The amendment raises the amount of the Company’s allowable indebtedness – incurred in connection with the purchase or lease of fixed assets – from $20 million to $40 million, provided that no more than $26.95 million is used with respect to any sale and leaseback transaction. In addition, the amendment requires the Company to use the net cash proceeds obtained in connection with any future sale and leaseback transactions to prepay any outstanding principal indebtedness under the term loan.


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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. 

Great Lakes Dredge & Dock (GLDD) – Additional Information on New Awards

Posted on by cpereira@noblefcm.com


Tuesday, August 27, 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, 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 Awards. Yesterday, Great Lakes issued a press release revealing receipt of $256.2 million of dredging awards, including the $120 million of awards we highlighted last week. The six awards the Company noted included two capital projects, three coastal protection, and one maintenance award.

Pipeline Over $1 Billion. In addition to the noted awarded projects, Great Lakes has approximately $318 million in low bids and options pending award, according to the release, which includes two jobs on which the Company was low bidder on this month. This brings Great Lakes’ potential total pipeline of work to over $1.2 billion.


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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. 

FreightCar America (RAIL) – Positive Momentum Driven by Potential for Market Share Gains and Margin Expansion

Posted on by cpereira@noblefcm.com


Tuesday, August 27, 2024

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.

Pure play manufacturer. FreightCar America, Inc. is a diversified manufacturer of railroad cars and rail car components. The company designs and manufactures a broad variety of railroad car types for the transportation of bulk commodities and containerized freight products primarily in North America. The company recently reported strong second-quarter financial results and appears poised for greater scale and margin expansion as it increases its market share and expands its product suite.

Updating estimates. While our 2024 and 2025 earnings per share estimates are unchanged at $0.25 and $0.47, respectively, we have increased our EBITDA estimates to $38.8 million and $46.7 million from $38.6 million and $46.0 million. We have assumed modestly higher sales. Importantly, we have increased our forward estimates beginning in 2026 to better reflect the company’s recent order for 1,000 tank car conversions and entry into the new tank car market beginning in 2028 which is expected to have a positive impact on gross margin.


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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. 

NN Inc. (NNBR) – Some Insider Buying

Posted on by cpereira@noblefcm.com


Wednesday, August 21, 2024

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.

Insider Buying. We are always interested to see insider buying, especially around current trading levels for the stock. Last week, three NN directors acquired a total of 32,550 NNBR shares at average prices in the $3.41 to $3.64 range. Such concentrated open market purchases are a positive, in our view.

Insider 1. First up, on August 14th Director Joao Faria disclosed the purchase of 20,000 NNBR shares at an average cost of $3.41 per share. Mr. Faria now owns 277,843 NNBR shares. Prior to last week, Mr. Faria’s most recent open market purchase was back in May 2023 when he acquired 30,000 NNBR shares at an average cost of $1.74.


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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) – More New Business

Posted on by cpereira@noblefcm.com


Wednesday, August 21, 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, 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.

Recent DOD Awards. Great Lakes has been awarded over $120 million in two new contracts since August 9th, according to the Department of Defense daily contract release. We believe the additional awards highlight the amount of opportunity available to Great Lakes.

Mobile Harbor. Yesterday, Great Lakes was awarded a $65.9 million firm-fixed-price contract to deepen and widen Mobile Harbor, with an estimated completion date of April 27, 2025. Fiscal 2020 civil construction funds and fiscal 2024 civil operation and maintenance funds in the amount of $65.9 million were obligated at the time of the award. The U.S. Army Corps of Engineers, Mobile, Alabama, is the contracting activity.


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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. 

SKYX Platforms (SKYX) – Setting the Table for Future Revenue Growth

Posted on by cpereira@noblefcm.com


Thursday, August 15, 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.

Execution on target. The company reported a solid quarter, in line with our revenue estimate and better than our adj. EBITDA loss estimate. Q2 revenue was $21.4 million, roughly in line with our estimate of $22.0 million, while an adj. EBITDA loss of $2.1 million was better than our forecast of a loss of $4.0 million. In our view, the sequential revenue growth, coupled with a diminishing cash burn should serve as a favorable indicator of the company’s ability to execute its growth strategy, while targeting a swing towards profitability in 2025.  

Expanding distribution channels. Recently, the company announced that its products would become available at Home Depot. Products are already live on Home Depot’s website and various products are expected to arrive in a select number of stores in the coming months. We view this as a significant expansion that furthers the company’s ability to reach both the retail and professional channels at scale. As such, we believe the inclusion of SKYX products at Home Depot could accelerate revenue growth in both customer verticals.


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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. 

FreightCar America (RAIL) – Strong 2Q Operational and Financial Results; Increasing Estimates

Posted on by cpereira@noblefcm.com


Wednesday, August 14, 2024

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.

Second quarter financial results. FreightCar America generated second quarter adjusted net income to common stockholders of $1.772 million or $0.05 per share compared to $0.424 million or $0.02 per share during the prior year period. We had forecast $1.582 million and $0.05 per share. Revenue and rail car deliveries increased to $147.4 million and 1,159 compared to $88.6 million and 760 during the second quarter of 2023. On a year-over-year basis, adjusted EBITDA increased 50.6% to $12.1 million. While EPS was in line with our estimates, railcar deliveries, revenues and adjusted EBITDA were above our estimates.

Full Year 2024 corporate guidance. Management raised its full year 2024 guidance ranges. Railcar deliveries are expected to be in the range of 4,300 to 4,700, revenue is expected to be in the range of $560 million to $600 million, and adjusted EBITDA is expected to be in the range of $35 to $39 million. Previously, railcar deliveries were expected to be in the range of 4,000 to 4,400, revenue was expected to be in the range of $520 million to $572 million, and adjusted EBITDA was expected to be in the range of $32 million to $38 million.


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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. 

SKYX Platforms (SKYX) – Solid Q2 Punctuated by Reduced Cash Burn

Posted on by cpereira@noblefcm.com


Tuesday, August 13, 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.

Q2 in line. The company reported Q2 revenue of $21.4 million, roughly in line with our estimate of $22.0 million. Adj. EBITDA of a loss of $2.1 million was better than our forecast of a loss of $4.0 million, primarily driven by lower-than-expected SG&A expenses. Figure #1 Q2 Results illustrates the quarterly performance.

Key expansion to Home Depot. Following the conclusion of Q2, the company announced that its products would become available at Home Depot, the industry leader in the home improvement market. In our view, this is a significant step for the company as Home Depot has both retail consumers and professional contractors. Consequently, we believe the inclusion of SKYX products at Home Depot could accelerate revenue growth in both customer verticals. The Home Depot expansion also serves to validate the SKYX technology, given that Home Depot is a global industry leader.


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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. 

FreightCar America (RAIL) – Solid 2Q Operational and Financial Results; 2024 Corporate Guidance Raised

Posted on by cpereira@noblefcm.com


Tuesday, August 13, 2024

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.

Second quarter financial results. FreightCar America generated second quarter adjusted net income to common stockholders of $1.772 million or $0.05 per share compared to $0.424 million or $0.02 per share during the prior year period. We had forecast $1.582 million and $0.05 per share. Revenue and rail car deliveries increased to $147.4 million and 1,159 compared to $88.6 million and 760 during the second quarter of 2023. On a year-over-year basis, adjusted EBITDA increased 50.6% to $12.1 million. While EPS was in line with our estimates, railcar deliveries, revenues and adjusted EBITDA exceeded our estimates of 980, $127.1 million, and $9.5 million, respectively. The weighted average diluted share count of ~32.3 million was also higher than our estimate of 31.1 million. Second quarter free cash flow amounted to $55.9 million based on net cash flows provided by operating activities of $57.2 million and $1.3 million of net cash flows used in investing activities.

Full Year 2024 corporate guidance. Management raised its full year 2024 guidance ranges. Railcar deliveries are expected to be in the range of 4,300 to 4,700, revenue is expected to be in the range of $560 million to $600 million, and adjusted EBITDA is expected to be in the range of $35 to $39 million. Previously, railcar deliveries were expected to be in the range of 4,000 to 4,400, revenue was expected to be in the range of $520 million to $572 million, and adjusted EBITDA was expected to be in the range of $32 million to $38 million.


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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.