Mistras initiated with a Buy at Roth Capital

Roth Capital initiated coverage of Mistras (MG) with a Buy rating and $22 price target The company has “significantly improved” its operating efficiency, which is driving margin expansion, profitability and conversion to free cash flow, the analyst tells investors in a research note. Roth expects Mistras to leverage the improvements to invest in higher growth, higher margin, differentiated end markets, like defense and infrastructure. The company’s focus on “less commoditized” revenue and improved margins should narrow the stock’s valuation gap relative to peers, contends Roth.