Cedar Grove Capital Management

Cedar Grove Capital Management

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Cedar Grove Capital Management
Cedar Grove Capital Management
Daktronics (DAKT) Potential to $40/Share
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Equity Research

Daktronics (DAKT) Potential to $40/Share

A follow-up to our original note on why we're bullish on DAKT

Paul Cerro's avatar
Paul Cerro
Dec 08, 2024
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Cedar Grove Capital Management
Cedar Grove Capital Management
Daktronics (DAKT) Potential to $40/Share
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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).


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