UFP Technologies, Inc. (UFPT) Research Update Released
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New York, NY - April 4, 2014 (www.investorideas.com newswire) Taglich Brothers released an updated research report on UFP Technologies, Inc. (UFPT) and reiterated a Speculative Buy rating with a 12-month price target of $28.00 per share. The report noted the following key investment considerations:
An aging population, increasing automotive demand, and innovation in new electronic products should drive growth over the next five years in UFPT’s principal end markets.
Growth in sales to the medical product industry has been strong. With 7% annual growth projected for this industry and over 1/3 of the company’s sales to this market, we project this to be the primary driver of growth for the company in 2014 and 2015.
A planned plant consolidation in 3Q14 is projected to reduce costs by over $0.7 million annually driving gross margin improvement to 29.5% by 2015 from 29.2% in 2013.
For 2014, we project revenue of $146.2 million ($150 million previously) and EPS of $1.58 ($1.75 previously). Our lower revenue projection stems from continued pressure on military sales. Our reduced net income projection reflects $1.5 million in one-time expenses related to a planned plant consolidation.
For 2015, we project revenue of $153.5 and EPS of $1.80. Revenue should be driven primarily by continued demand for medical products.
4Q13 revenue (reported 3/14/14) increased 5% to $35 million and EPS increased to $0.47 from $0.45 in the year-earlier period. We estimated 4Q13 revenue of $36 million and EPS of $0.41
UFP Technologies (UFPT) is an innovative designer and manufacturer of a broad range of high performance cushion foam and molded fiber packaging products, and specialty foam and plastic products for industrial and consumer markets. The company’s Packaging division is a leader in the emerging market for environmentally sound molded fiber interior packaging.
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