The firm said it lowered its rating on the international aerospace and industrial manufacturing and service provider as it's seeing slower organic growth.
Deutsche Bank cut its price target on Barnes to $40 from $46.
Separately, TheStreet Ratings team rates BARNES GROUP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate BARNES GROUP INC (B) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, impressive record of earnings per share growth and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 4.2%. Since the same quarter one year prior, revenues rose by 20.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.49, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.05, which illustrates the ability to avoid short-term cash problems.
- 41.60% is the gross profit margin for BARNES GROUP INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.38% is above that of the industry average.
- BARNES GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BARNES GROUP INC reported lower earnings of $1.31 versus $1.46 in the prior year. This year, the market expects an improvement in earnings ($2.25 versus $1.31).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Machinery industry and the overall market, BARNES GROUP INC's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: B Ratings Report