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William Blair starts ‘industrial compounder’ Federal Signal at Outperform

William Blair starts ‘industrial compounder’ Federal Signal at Outperform

William Blair initiated coverage of Federal Signal with an Outperform rating. The company has established itself as a “high-quality industrial compounder” with an ability to not only drive strong organic growth, but also accretively add to its market-leading platform of specialty commercial vehicle businesses, the analyst tells investors in a research note. The firm believes investors do not fully appreciate the earning power implied by Federal Signal’s high-single-digit organic growth algorithm and margin expansion potential.

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