UPDATE: Imperial Capital Initiates Coverage On ARC Group WorldWide On Multiple Positive Factors

In a report published Tuesday, Imperial Capital analyst Ashok Kumar initiated coverage on ARC Group WorldWide (NASDAQ: ARCW) with an Outperform rating and $20.00 price target.

In the report, Imperial Capital noted, “We are initiating coverage of ARCW shares with an Outperform rating and a one-year price target of $20, about 31% above recent share price.

"The company's core manufacturing businesses are in precision components, flanges and fittings, and wireless technology. ARCW has expanded its precision components capability both through organic growth as well as through acquisitions. Inorganic growth increases ARCW's ability to be a one-stop shop for its customer base by offering additional forms of metal and plastic fabrication, rapid prototyping and low volume production. ARCW's focus, since the establishment of the current operating structure in August 2012, has been on improving cost efficiencies and driving margin expansion.

"The company's financial model is at an inflection point and should benefit from top line sales growth, improved operational efficiencies, and the financial benefits realized from integration and cost reduction efforts company-wide. ARCW is a holistic solutions provider in plastics and metal fabrication, with a primary focus on helping customers improve speed-to-market.”

ARC Group WorldWide closed on Monday at $15.20.