Revolution Lighting Technologies (NASDAQ:RVLT) shares bounced back significantly in Tuesday trade following the price target upgrade from Thomson Reuters. According to reports, Thomson Reuters has increased RVLT stock price target to above $6.50 a share, significantly higher from the current price of $3.84 per share at present.
Revolution Lighting Technologies stock jumped more than 17% in Tuesday trade. The stock is up only 2% in the past month including the latest rally. RVLT stock is still down by more than 41% in the last three months, declined above 60% from the 52-week high it hit at the end the first quarter of the last year.
Source: finviz.com
The $80 million small-cap electronic components company has a 52-week trading range of $2.95-$9.17.
The company’s stock tumbled sharply in the last couple of quarters, impacted by lower than expected financial results in the past quarters. Moreover, Revolution Lighting has also lowered their guidance for the full year of FY2017 following lower results in the previous quarters.
It expects fourth-quarter revenue to stand in the range of $35 million, considerably lower from the previous guidance of $47-$50 million. The company blamed the unprecedented weather conditions for lower than expected results.
RVLT management has declined its full-year revenue expectations to $152 million, relative to the earlier estimate of $165-$170 million.
On the positive side, the company expects to generate a steady growth in revenue and earnings in FY2018, supported by a strong backlog related to Value Lighting and Revolution Lighting.
“I am confident that the actions that we are taking will significantly improve our Company, our operations, and our business prospects,” said Robert V. LaPenta, Chairman, CEO, and President of Revolution Lighting Technologies.”
Although the company’s financial numbers are likely to remain depressed in the short-term, its future fundamentals appear strong considering the estimate of $165-$170 million for 2018. Moreover, the stock is seen by analysts undervalued, trading around 0.6 times to book ratio and 0.4 times to sales, relative to the industry average of 2.8 and 1.8 times, respectively. Thus, the RVLT stock has upside potential, as seen by some analysts, in the days to come despite lower than expected results in the past quarters.
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