B. Riley Cuts L B Foster Price Target By 14%

B. Riley analyst Alex Rygiel lowered the price target on railroad equipment company L B Foster Co FSTR to $18 (an upside of 18%) from $21 and maintained a Buy rating on the shares.
Rygiel noted the company's Q4 results were below his estimates, reflecting lower Rail Tech/Services revenue and higher input and labor costs.
Meanwhile, the analyst thinks the company will benefit from growth markets and improve margins in 2022 and beyond.
Recently, L B Foster reported a fourth-quarter net sales decline of 2.3% year-over-year to $113 million, missing the consensus of $132.48 million.
The gross profit margin was 16.9%, a reduction of 190 bps from the prior-year quarter.
EPS loss was $(0.03) versus $0.24 a year ago.
New orders for the year ended December 31, 2021, were $508.2 million, a 4.% decline from the prior year. Backlog, adjusted for the divestiture of the Piling business, decreased by 2.8% Y/Y.
Price Action: FSTR shares are trading lower by 4.58% at $15.20 on the last check Thursday.

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