Arxis initiated with an Overweight at Wells Fargo

Wells Fargo initiated coverage of Arxis (ARXS) with an Overweight rating and $42 price target Arxis is an industrial compounder which has more than doubled EBITDA over last four years through organic growth and acquisitions, the analyst tells investors in a research note. The firm says the company manufactures highly engineered mechanical and electronic components that are mission-critical, but represent less than 1% of total platform cost. It sees low-double-digit EBITDA growth going forward for Arxis.