Federal Signal price target lowered to $90 from $94 at DA Davidson

DA Davidson analyst Michael Shlisky lowered the firm’s price target on Federal Signal (FSS) to $90 from $94 and keeps a Neutral rating on the shares after its Q3 earnings beat. The company’s EBITDA was about 12% better than the firm’s model in ESG and in-line at SSG, and its demand trends appeared positive in nearly every business going into year-end, the analyst tells investors in a research note. Federal Signal has earned its position at the top of the valuation food chain, though there are other companies in the peer group that are in an earlier stage of multi-year growth and margin improvement that may offer a better investment opportunity, the firm added.