Faro Technologies price target raised to $36 from $33 at Craig-Hallum

Craig-Hallum analyst Greg Palm raised the firm’s price target on Faro Technologies (FARO) to $36 from $33 and keeps a Buy rating on the shares. In conjunction with a competitor conference this week, Faro updated its long-term, aspirational margin targets. Not even a year after rolling these out initially, after delivering significant progress, management increased both gross and EBITDA margin targets, the firm notes. Specifically, at $400M in revenue, EBITDA margins are now expected to be 20% vs. 15% previously. Given the new assumptions, Craig-Hallum is increasingly confident in the company’s ability to generate $100M of EBITDA in the coming years, which would represent almost a threefold increase to its FY24 estimate.