TTM Technologies (TTMI) Stock Receives Price Target Hike at Canaccord Genuity

NEW YORK (TheStreet) -- TTM Technologies (TTMI) stock received a price target increase by analysts at Canaccord Genuity to $12 from $11 as the firm reiterated its "buy" rating.

The California-based company provides various printed circuit board products and backplane assemblies worldwide.

This action comes after the company yesterday announced the completion of the acquisition of Viasystems Group (VIAS) , a maker of circuit boards used in electronic devices.

TTM Technologies closed the deal to buy the rival company for more than $380 million, according to the analyst note.

This acquisition "is very complementary and will position the combined company as a leading PCB manufacturer, with VIAS' strength in automotive, medical, and industrial and instrumentation complementing TTMI's strength in smartphones, networking and communications, medical and industrial, and military and aerospace," analysts said.

In Tuesday's early morning trading session the stock is gaining 0.99% to $10.17.

Separately, TheStreet Ratings team rates TTM TECHNOLOGIES INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate TTM TECHNOLOGIES INC (TTMI) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 0.5%. Since the same quarter one year prior, revenues rose by 12.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 190.7% when compared to the same quarter one year prior, rising from -$3.80 million to $3.45 million.
  • Powered by its strong earnings growth of 180.00% and other important driving factors, this stock has surged by 28.01% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • 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. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, TTM TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for TTM TECHNOLOGIES INC is rather low; currently it is at 23.12%. Regardless of TTMI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.04% trails the industry average.
  • You can view the full analysis from the report here: TTMI Ratings Report

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