Federal Signal price target lowered to $100 from $105 at Raymond James

Raymond James lowered the firm’s price target on Federal Signal (FSS) to $100 from $105 and keeps an Outperform rating on the shares. The firm says its target multiple represents a premium to the current average of a loosely defined set of midcap industrial compounders, which Raymond James believes is justified given the margin upside and positive inflection in free cash flow. The firm has recently spent time with members of Federal Signal’s senior management team, and also caught up with some of the company’s exclusive dealers, which in aggregate as a group account for about 30% of the company’s annual sales.