Lake Street analyst Robert Brown downgraded the rating on NV5 Holdings (NVEE – Research Report) to a Hold today, setting a price target of $23.00.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Robert Brown has given his Hold rating due to a combination of factors surrounding the acquisition of NV5 Holdings by Acuren. The transaction values NV5 at $23 per share, which includes a mix of cash and stock, aligning with the current market valuation and offering a 22% premium over the previous closing price. This acquisition price reflects a valuation of 10.4x EV/EBITDA based on current-year estimates, which is consistent with the peer group range.
Brown’s decision to lower the rating to Hold and adjust the price target to $23 is influenced by the strategic nature of the merger, which combines complementary platforms in testing and engineering. The merger is expected to yield commercial and cost synergies, with Acuren projecting $20 million in cost savings. Despite the potential benefits, the revised price target reflects the acquisition terms rather than standalone growth prospects, leading to the Hold rating.
According to TipRanks, Brown is a 5-star analyst with an average return of 20.3% and a 52.53% success rate. Brown covers the Industrials sector, focusing on stocks such as NV5 Holdings, Argan, and NN.