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.
The full report can be viewed at http://www.taglichbrothers.com.
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.
Taglich Brothers, Inc. is full-service broker dealer focused exclusively on microcap companies. The Company defines the microcap segment of the equity market as companies with less than $250 million in market capitalization. Taglich Brothers currently offers institutional and retail brokerage services, investment banking and comprehensive research coverage to the investment community.
The Taglich Brothers' Equity Research department is dedicated to providing research reports that are informative, insightful and illuminating. Reports are designed to distill volumes of investment information into a concise, straightforward format so that busy professional investors can make informed investment decisions.
The information and statistical data contained herein have been obtained from sources, which we believe to be reliable but in no way are warranted by us as to accuracy or completeness. We do not undertake to advise you as to changes in figures or our views. This is not a solicitation of any order to buy or sell. Taglich Brothers, Inc. is fully disclosed with its clearing firm, Pershing, LLC, is not a market maker and does not sell to or buy from customers on a principal basis. The above statements are the opinion of Taglich Brothers, Inc. and are not a guarantee that the target price for the stock will be met or that predicted business results for the company will occur. There may be instances when fundamental, technical and quantitative opinions contained in the reports are not in concert. We, our affiliates, any officer, director or stockholder or any member of their families may from time to time purchase or sell any of the above-mentioned or related securities. Analysts and members of the Research Department are prohibited from buying or selling securities issued by the companies that Taglich Brothers, Inc. has a research relationship with, except if ownership of such securities was prior to the start of such relationship, then an Analyst or member of the Research Department may sell such securities after obtaining expressed written permission from Compliance. All research issued by Taglich Brothers, Inc. is based on public information. Taglich Brothers, Inc. does not currently have an Investment Banking relationship with the company mentioned and was not a manager or co-manager of any offering for the company within the last three years. In September 2012 the company paid an initial monetary engagement fee of US$4,500 to Taglich Brothers, Inc. representing payment for the first three months of creation and dissemination of research reports, after which the company will pay Taglich Brothers, Inc. a monetary fee of US$1,500 per month for a minimum of three more months for such services.For further information and Taglich Brothers, Inc. ownership data please refer to each individual report.
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