William Blair analyst Ross Sparenblek has maintained their bullish stance on FSS stock, giving a Buy rating on October 15.
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Ross Sparenblek has given his Buy rating due to a combination of factors that highlight Federal Signal’s strong financial performance and strategic positioning. Despite a recent decline in share price, the company reported robust third-quarter results with a notable increase in order momentum. This performance led to an upward revision of the full-year revenue and adjusted EPS guidance, indicating confidence in future growth.
Furthermore, Federal Signal’s strategic moves, such as the anticipated acquisition of New Way, are expected to offset current order headwinds and enhance margins by capturing both OEM and dealer margins. The company’s operational strength is evident in its production volume growth and successful integration of Hog Technologies. Although lead times for certain products remain extended, this is seen as a sign of sustained municipal demand, providing visibility into 2026 and beyond, with continued organic growth potential through new product adoption.
Sparenblek covers the Industrials sector, focusing on stocks such as Federal Signal, JBT Marel, and Kadant. According to TipRanks, Sparenblek has an average return of 11.3% and a 60.98% success rate on recommended stocks.
In another report released on October 15, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $131.00 price target.