Analyst Ronald Epstein from Bank of America Securities maintained a Buy rating on Cadre Holdings (CDRE – Research Report) and keeping the price target at $45.00.
Ronald Epstein has given his Buy rating due to a combination of factors which signal a strong future for Cadre Holdings despite a temporary setback in earnings per share (EPS). While the EPS of $0.18 did not meet the expected $0.25, largely due to higher selling, general and administrative expenses from acquisitions and transactions, the company’s revenue performance was on target. The reported revenue of $138 million was in line with Bank of America’s estimate and surpassed the Bloomberg consensus, indicating a solid sales foundation.
Furthermore, Cadre Holdings’s adjusted EBITDA margins exceeded expectations, coming in at 17.8% against the forecasted 17.4%, showcasing efficient core operations profitability. The firm’s reiteration of its 2024 revenue and adjusted EBITDA outlook suggests confidence in its business trajectory and continued strong demand in the global security market. Epstein’s price objective of $45.00 reflects this optimism, signaling a belief in the company’s value growth potential over the medium term.
Epstein covers the Industrials sector, focusing on stocks such as Boeing, Hexcel, and CAE. According to TipRanks, Epstein has an average return of 8.5% and a 59.45% success rate on recommended stocks.
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Cadre Holdings (CDRE) Company Description:
Cadre Holdings Inc is engaged in the design and manufacture of a diversified product portfolio of critical safety and survivability equipment to protect first responders, federal agencies, outdoor recreation, and personal protection markets.
