KeyBanc Starts Hill International (HIL) at Buy

KeyBanc initiated coverage on Hill International (NYSE: HIL) with a Buy rating and a price target of $6.50.

Analyst Tahira Afzal siad, "We view HIL as a relatively low execution risk play on the global non-residential market, with exposure to relatively higher growth regions. We are initiating with 2014 and 2015 EPS estimates of $0.16 and $0.36, respectively, and 2014 and 2015 EBITDA estimates of $42.5 million and $55.9 million, respectively. Our EPS estimates compare with consensus of $0.01 for 2014 and $0.38 for 2015. Our 2014 EPS estimate excludes a one-time early debt retirement charge that the Company will be taking in 3Q14. Our price target of $6.50 is predicated on a 7.3x multiple on our 2015 EBITDA estimate–we estimate this to be at a roughly 7%+ discount to the multiple of HIL’s appropriate peer group (front-end/construction management exposed E&C companies with international exposure). On a broader scale, HIL is currently trading at a 17% discount to its traditional E&C peers on 2014 EBITDA and at a 20%+ discount to its peers on a 2015 EBITDA basis."

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

Shares of Hill International closed at $4.49 yesterday.

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