Daktronics (DAKT) Potential to $40/Share
A follow-up to our original note on why we're bullish on DAKT
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Key Highlights
Despite the stock being up >20% since our note on Tuesday, we’re bullish on the name with the potential to be worth $40/share in the coming years.
The company has made great efforts over the last few years to work through ballooned backlogs, improve margins, and deliver outstanding products.
Balance sheet has been completely right-sized since the depths of COVID and is setting them up for the next leg of business improvements that will propel growth and profitability in the years to come.
The future looks like DAKT can achieve high-teen adjusted EBITDA margins and the potential to nearly double EPS over the next few years.
Key institutional owners on the cap table invite both an “easier night’s sleep” and the ability to convince management of changes should push come to shove.
Disclaimer: We are currently long Daktronics (DAKT).