Federal Signal added to DA Davidson ‘Best of Breed Bison’ list

DA Davidson keeps a Neutral rating and $82 price target on Federal Signal (FSS), but the firm is adding the stock to its “Best-of-Breed Bison” which filters for best in class companies with sustainable moats and favorable risk / reward dynamics. DA Davidson is positive on the company’s wide corporate moat, stating that over the years, through the use of M&A and strategic dealer partnerships, Federal Signal has carved out #1 or #2 market shares in nearly all of the key categories it serves, the analyst tells investors in a research note. Federal also seems to rise to market challenges better than most, with one example being when the company “won” the pandemic by procuring truck chassis when others couldn’t and deftly managing its supply chain, the firm adds.