NEW YORK (TheStreet) -- Robert W. Baird upgraded Clarcor (CLC) to "outperform" from "neutral" and set a $67 price target. The firm said the recent acquisition of Stanadyne should augment improving core fundamentals.
The stock closed at $60.67 on Wednesday.
Separately, TheStreet Ratings team rates CLARCOR INC as a "buy" with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate CLARCOR INC (CLC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 6.2%. Since the same quarter one year prior, revenues rose by 34.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, CLC has a quick ratio of 1.83, which demonstrates the ability of the company to cover short-term liquidity needs.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Machinery industry average. The net income increased by 4.5% when compared to the same quarter one year prior, going from $33.05 million to $34.55 million.
- 36.15% is the gross profit margin for CLARCOR INC which we consider to be strong. Regardless of CLC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CLC's net profit margin of 8.93% compares favorably to the industry average.
- CLARCOR INC's earnings per share improvement from the most recent quarter was slightly positive. 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, CLARCOR INC reported lower earnings of $2.35 versus $2.43 in the prior year. This year, the market expects an improvement in earnings ($2.78 versus $2.35).
- You can view the full analysis from the report here: CLC Ratings Report
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.