Piper Jaffray Starts TCP International (TCPI) at Overweight

Piper Jaffray initiates coverage on TCP International (NYSE: TCPI) with a Overweight rating and a price target of $14.00.

Analyst Mike Ritzenthaler said, "We view TCP's diverse channel access, low-cost manufacturing base, and operating leverage (as sales mix shifts toward LEDs and commercial & industrial) as key factors in enabling substantial EBITDA and profit growth over the next several years. We expect ~250 bps of EBIT margin expansion over the next 2 years, driving a 30+% EBITDA CAGR over the same timeframe - well above the mid-teens growth rate expectations for peers. We particularly favor TCP's C&I channel access (~40% of LTM sales), which is the most profitable area within the lighting industry and a market that is absorbing LED lamps and luminaires at an elevated pace. TCP is one of the few healthy, growing US-based small cap vehicles for exposure to the LED migration theme."

For an analyst ratings summary and ratings history on TCP International click here. For more ratings news on TCP International click here.

Shares of TCP International closed at $10.85 yesterday.

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