UFP Technologies, Inc. (UFPT) Research Update Released
New York, NY - September 3, 2014 (www.investorideas.com newswire) On September 2, 2014, Taglich Brothers released an updated research report on UFP Technologies, Inc. (UFPT), reiterating a Speculative Buy rating and lowering the 12-month price target to $27.50 from $30.00 per share due to reduced earnings expectations. The report noted the following key investment considerations:
An aging population, increasing automotive demand, and innovation in new electronic products should drive growth in UFPT’s principal end markets over the next five years.
A planned plant consolidation in 3Q14 is projected to reduce costs by approximately $0.75 million annually, driving gross margin improvement to 30% by 2015 from 28.4% in 2013.
For 2014, we project revenue of $140.6 million and EPS of $1.29, down from our earlier projections of $144.8 million revenue and EPS of $1.50 to reflect 2Q14 results and a greater than expected reduction in military sales.
For 2015, we project revenue of $147 million and EPS of $1.71, down from previous projections of $151 million revenue and EPS of $1.85. Our lowered projections stem from a greater than expected reduction in military sales.
2Q14 revenue (released 8/8/14) decreased 5% to $34 million and EPS decreased to $0.26. We projected 2Q14 revenue of $37 million and EPS of $0.41. Results were adversely affected by a decline in aerospace and defense market spending. However, aerospace and defense sales are expected to improve in 2H14.
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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