Industrials
Since CBZ announced its largest ever acquisition and reported 2Q24 results, the share price has fallen c.20%. However, Sidoti sees the Marcum deal as a natural and positive step for the company, adding long-term EPS and FCF growth potential as well as size, scale and service offerings. Their new estimates now imply respective annual EPS growth of 10.0% and 20.6% for this year and next. Sidoti’s FCF per share estimates of $2.88 in 2024 and $3.54 in 2025 imply respective FCF yields of 4.2% and 5.2%. They believe the recent pullback provides an attractive entry point and upgrade the stock to Buy with a target price of $86 based on 27x their 2025 EPS estimate of $3.20.
Edition: 193
- 23 August, 2024