In a report released yesterday, Tate Sullivan from Maxim Group reiterated a Buy rating on Star Equity Holdings (STRR – Research Report), with a price target of $8.00.
Tate Sullivan has given his Buy rating due to a combination of factors including Star Equity Holdings’ strategic acquisition and financial performance. The acquisition of Alliance Drilling Tools, which has shown strong revenue and EBITDA margins, is expected to significantly contribute to Star Equity’s financial growth. This acquisition, along with the company’s improved EBITDA in the fourth quarter of 2024, supports a positive outlook for future earnings.
Additionally, Star Equity’s current trading valuation and its potential for generating free cash flow strengthen the Buy recommendation. The company is also positioned to benefit from its modular construction projects and cross-selling opportunities across its various business segments. These strategic moves and financial metrics underpin Sullivan’s confidence in the stock’s potential, leading to the reiterated Buy rating and an $8 price target.
STRR’s price has also changed dramatically for the past six months – from $4.040 to $2.200, which is a -45.54% drop .
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