Royal Bank Of Canada Forecasts Strong Price Appreciation for Arxis (NASDAQ:ARXS) Stock

Key Points

• Royal Bank of Canada raised Arxis’s price target from $60 to $64 and maintained an “outperform” rating, implying 24.61% upside from the prior close.
• Analyst sentiment remains favorable, with 11 Buy ratings and two Holds; Arxis has a consensus “Moderate Buy” rating and a $55 price target.
• Arxis reported quarterly EPS of $0.28, beating estimates by $0.35, while revenue rose 25% year over year to $500.73 million. Shares recently traded at $51.36, with a market capitalization of $21.44 billion.

Arxis (NASDAQ:ARXS - Get Free Report) had its price objective increased by Royal Bank Of Canada from $60.00 to $64.00 in a research report issued to clients and investors on Friday, Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Royal Bank Of Canada's price target points to a potential upside of 24.61% from the company's previous close.

Several other research firms have also issued reports on ARXS. Wells Fargo & Company lifted their target price on Arxis from $52.00 to $63.00 and gave the company an "overweight" rating in a research note on Tuesday, August 4th. Citigroup lifted their price objective on shares of Arxis from $61.00 to $67.00 and gave the company a "buy" rating in a research note on Thursday, August 13th. Morgan Stanley reaffirmed an "overweight" rating and issued a $62.00 price objective on shares of Arxis in a report on Monday, August 3rd. Jefferies Financial Group reissued a "buy" rating and issued a $60.00 price target on shares of Arxis in a research note on Sunday, August 2nd. Finally, Weiss Ratings upgraded Arxis from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, October 8th. Eleven equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $55.00.

Arxis Stock Performance

ARXS stock traded down $3.57 during midday trading on Friday, reaching $51.36. The company's stock had a trading volume of 200,692 shares, compared to its average volume of 1,032,214. The stock has a market cap of $21.44 billion and a price-to-earnings ratio of 642.00. Arxis has a 1 year low of $33.15 and a 1 year high of $61.50. The company's fifty day moving average price is $51.31. The company has a quick ratio of 3.79, a current ratio of 5.21 and a debt-to-equity ratio of 0.38.

Arxis (NASDAQ:ARXS - Get Free Report) last issued its earnings results on Wednesday, July 29th. The company reported $0.28 EPS for the quarter, topping analysts' consensus estimates of ($0.07) by $0.35. The company had revenue of $500.73 million for the quarter. The business's revenue for the quarter was up 25.0% compared to the same quarter last year. As a group, analysts forecast that Arxis will post 0.57 EPS for the current fiscal year.

Institutional Trading of Arxis

Hedge funds have recently added to or reduced their stakes in the stock. Squarepoint Ops LLC purchased a new position in Arxis in the second quarter worth $19,506,000. Alyeska Investment Group L.P. acquired a new position in Arxis during the second quarter worth about $13,842,000. State Street Corp purchased a new stake in shares of Arxis in the second quarter valued at about $9,948,000. BlueCrest Capital Management Ltd acquired a new stake in shares of Arxis in the second quarter valued at approximately $7,389,000. Finally, Grandeur Peak Global Advisors LLC purchased a new position in shares of Arxis during the 2nd quarter worth approximately $2,740,000.

About Arxis

We are a leading designer and manufacturer of proprietary, mission-critical electronic and mechanical components engineered for cutting-edge performance in extreme environments. Leveraging significant intellectual property (“IP”) and world-class engineering capabilities, we design and deliver innovative solutions that address some of our customers' most complex performance needs. Arxis is the result of a deliberate and disciplined strategy executed by our sponsor, Arcline, and the Arxis management team to create a purpose-built, cohesive business through targeted acquisitions with similar product and end market characteristics.

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