Needham & Company Upgrades Daktronics (DAKT) to Buy

Needham & Company upgraded Daktronics (NASDAQ: DAKT) from Hold to Buy with a price target of $10.00, citing an attractive risk reward.

Analyst James Ricchiuti commented, "We are raising our rating on DAKT to Buy from Hold. Shares have continued to fall since the FQ1 miss and are down 25% in the last month (vs down ~1.4% for the S&P 500). DAKT shares are trading toward the low end of their 5-year range on a variety of metrics, providing investors with an attractive risk-reward opportunity, in our view. DAKT entered FQ2, normally a seasonally strong qtr, with a record backlog, including a large number of center-hung display projects for the indoor market. Given the timing of the indoor sports season, the vast majority of these projects needs to be completed in FQ2 (ending Oct), which gives us confidence that FQ2 guidance is achievable and possibly conservative. We are establishing a target price of $10, or 13x our out-year EPS estimate, adjusting for net cash, representing 21% appreciation potential from yesterday’s close."

For an analyst ratings summary and ratings history on Daktronics click here. For more ratings news on Daktronics click here.

Shares of Daktronics closed at $8.24 yesterday.

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