Analysts Are Bullish on Top Services Stocks: Vectrus (VEC), Rcm Technologies (RCMT)

There’s a lot to be optimistic about in the Services sector as 2 analysts just weighed in on Vectrus (VECResearch Report) and Rcm Technologies (RCMTResearch Report) with bullish sentiments.

Vectrus (VEC)

B.Riley FBR analyst Christopher Van Horn maintained a Buy rating on Vectrus on September 13 and set a price target of $49. The company’s shares closed last Monday at $41.92.

Van Horn said:

“We are transferring coverage of Vectrus, Inc. (VEC) to Christopher Van Horn, due to a reallocation of resources, and maintaining our Buy rating and 12-month price target of $49. We believe that VEC has a significant long-term growth opportunity, as its government customers in the DOD and certain civilian agencies continue to pursue the unification of physical and digital infrastructure. In our view, VEC’s legacy expertise in base operations’ management, in multiple regions around the world, provides it with a strong competitive foothold for future work, as demonstrated by the company’s success in winning a position on the U.S. Army’s LOGCAP V mega-contract earlier this year. While LOGCAP is going through a protest period, we expect a favorable resolution for VEC; and we see the work under LOGCAP offering a medium-term growth tailwind.”

According to TipRanks.com, Horn is a 3-star analyst with an average return of 1.6% and a 49.4% success rate. Horn covers the Consumer Goods sector, focusing on stocks such as Crawford United Corporation Class A, Motorcar Parts Of America, and Standard Motor Products.

Vectrus has an analyst consensus of Moderate Buy, with a price target consensus of $49.

See today’s analyst top recommended stocks >>

Rcm Technologies (RCMT)

In a report issued on September 13, Alex Rygiel from B.Riley FBR maintained a Buy rating on Rcm Technologies, with a price target of $6. The company’s shares closed last Monday at $2.95.

Rygiel noted:

“We are transferring coverage of RCM Technologies, Inc. (RCMT) to Alex Rygiel, due to a reallocation of resources, and maintaining our Buy rating and 12-month price target of $6. We believe the company is well positioned for multiyear revenue growth and margin expansion, with potential upside from its engineering business within the electric T&D market. We continue to see solid contributions to growth from its healthcare and IT staffing business segments, though we remain focused on the engineering business. We anticipate that rising revenue, a stable to increasing gross margin, and opex leverage can combine to drive meaningful improvement in adjusted EBITDA and EPS through 2019 and 2020. We do not think these financial prospects are priced into the stock.”

According to TipRanks.com, Rygiel is a 5-star analyst with an average return of 8.2% and a 60.5% success rate. Rygiel covers the Basic Materials sector, focusing on stocks such as Granite Construction Inc, Tutor Perini Corp, and Quanta Services.

Rcm Technologies has an analyst consensus of Moderate Buy, with a price target consensus of $6.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.