After Reuters reported that NV5 Global is exploring a sale and is working with advisers, Baird offered three reasons why a sale “could have merit.” Namely, the firm cites the stock’s “somewhat depressed valuation,” a CEO with a large stake who is nearing retirement with no obvious successor named and an industry that has an increasingly “bar belled” structure. The firm notes that shares at $107 trade at 11.8 times the firm’s next twelve months EBITDA estimate and contends that its “not unreasonable to consider a couple of multiple turn premium from today’s trading level” if the company were to be sold. Baird has a Neutral rating and $104 price target on NV5 shares.
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