Stifel downgrades DMC Global to Hold, says path to material upside unclear

Stifel analyst Stephen Gengaro downgraded DMC Global (BOOM) to Hold from Buy with a price target of $8, down from $16. While there is possibly still solid unrealized long-term value in the shares, the path to material upside over the next several quarters is unclear, the analyst tells investors in a research note. The firm noted that the retirement of CEO Michael Kuta and recent board changes, coupled with lackluster end-market demand, make it difficult tot analyze performance going forward, and the potential that the minority owner of Arcadia exercises the put/call option would have a dilutive impact on current investors.