Barrington analyst Kevin Steinke maintained a Buy rating on Superior Group of Companies (SGC – Research Report) today and set a price target of $18.00.
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Kevin Steinke has given his Buy rating due to a combination of factors including Superior Group of Companies’ strategic positioning in large and fragmented markets, such as healthcare apparel and branded products. Despite a slight decline in Q4/24 revenue, the company achieved a full-year revenue increase of 4.1%, aligning with their revised guidance. The Branded Products segment, although experiencing some variability, shows potential for growth by leveraging competitive strengths in a $24 billion market.
Additionally, the Healthcare Apparel segment demonstrated strong growth, particularly through online sales channels, and presents significant opportunities in a $4 billion market where Superior holds a modest share. The Contact Centers segment also showed positive growth, supported by new customer acquisitions and a developing sales force. Although there was a decline in EBITDA due to higher production costs and lower gross margins, the company’s overall strategy and market opportunities support the Buy rating, with a target price of $18.
According to TipRanks, Steinke is a 5-star analyst with an average return of 13.8% and a 57.00% success rate. Steinke covers the Industrials sector, focusing on stocks such as Icf International, ACCO Brands, and Cra International.
In another report released yesterday, D.A. Davidson also reiterated a Buy rating on the stock with a $20.00 price target.
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