William Blair Starts Federal Signal (FSS) at Outperform

William Blair analyst Ross Sparenblek initiates coverage on Federal Signal (NYSE: FSS) with a Outperform rating.

The analyst comments "Underappreciated Earnings Power. Over the better part of the last decade, Federal Signal has established itself as a high-quality industrial compounder with an ability to not only drive strong organic growth, but also accretively add to its market-leading platform of specialty commercial vehicle businesses. While the market has begun to acknowledge the improving quality of the business as evidenced by its expanding multiple, we believe investors do not fully appreciate the earning power implied by Federal Signal’s high-single-digit organic growth algorithm and margin expansion potential."

For an analyst ratings summary and ratings history on Federal Signal click here. For more ratings news on Federal Signal click here.

Shares of Federal Signal closed at $87.25 yesterday.

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