Federal Signal price target raised to $140 from $130 at KeyBanc

KeyBanc raised the firm’s price target on Federal Signal (FSS) to $140 from $130 and keeps an Overweight rating on the shares. The firm think the stock’s reaction was driven by results that alleviated concerns surrounding orders and backlog. Further, KeyBanc believes Federal Signal has earned its operational credibility over time – and with the company actively executing to reduce its lead times and backlog, the firm expects a greater level of monetization leading to likely above average incremental margins.