B. Riley Bumps Up Alta Equipment Price Target By 10%

B. Riley analyst Alex Rygiel raised the price target on Alta Equipment Group Inc ALTG to $21 (an upside of 24%) from $19 and reiterated a Buy rating on the shares post the Q3 results.
Rygiel says Alta's rental utilization and higher-margin parts and service segments continue to be positively impacted by current supply chain disruptions which are impacting new equipment supply.
Recently, Alta Equipment reported Q3 results, with revenue growth of 33.7% year-over-year, beating the consensus of $286.56 million.
Adjusted EPS improved to $0.02 from $(0.10) a year ago, below the consensus of $0.03.
The gross margin expanded by 180 bps to 27.5%. Reported income from operations of $6 million versus $(3.5) million a year ago.
Adjusted EBITDA grew 43.4% to $31.5 million, and margin contracted by 65 bps to 10.7%.
Alta Equipment generated cash from operating activities year-to-date of $4.1 million, compared to cash used $44.8 million a year ago.
FY21 Outlook: The company expects an Adjusted EBITDA of $113 million - $116 million (prior view $110 million - $115 million).
Price Action: ALTG shares are trading higher by 5.21% at $16.76 on the last check Friday.

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