Xpel: Jumps as Craig-Hallum starts with 'buy', says fundamentals 'strong and improving'

XPEL

04/09/2019 16:29

** Automotive products maker's shares  XPEL.O  up 11.3% to
$11.38 after Craig-Hallum starts coverage with "buy" rating
    ** Sets PT at $15, a near 47% upside to stock's last closing
price
    ** Craig-Hallum says given stock's recent Nasdaq uplisting
and microcap valuation, XPEL is relatively unknown to investors
    ** Brokerage bullish on co's "strong and improving"
fundamentals such as double-digit organic revenue growth, 30%
gross margins and 10% operating margin, ~50% ROIC, positive FCF
and net cash positive 
    ** While XPEL has self-funded its growth last several years
with revenue doubling every other year, there is a significant
market opportunity remaining - Craig-Hallum 
    ** Believes domestic industry penetration can double to
low-teens percentage with XPEL maintaining or gaining market
share, complemented by faster growth internationally and in its
new product categories
    ** Stock up 85% this year, including session gains

 (Reporting by Medha Singh in Bengaluru)
 ((medha.singh@thomsonreuters.com))