Colfax's Investment Appeal Weakens On Rising Costs, Debt
Zacks Investment Research | Apr 10, 2018 09:56PM ET
We have issued an updated research report on Colfax Corporation (NYSE:CFX) on Apr 11.
Exposures in emerging markets, focus on innovative products and gains from buyouts are to benefit Colfax in the years ahead. However, industry competition, rising costs and expenses remain prime concerns.
Despite solid growth opportunities that are stemming from inorganic strategies — including both acquisition of meaningful businesses and divestment of non-core assets — and healthy segmental businesses, we believe that this machinery company faces several headwinds that can jeopardize financial performance in the near-term.
The company, with $3.8 billion market capitalization, currently carries a Zacks Rank #4 (Sell). Below, we have briefly discussed the prevalent headwinds for Colfax.
Share Price Performance and Earnings Estimate Revision: In the last three months, Colfax’s shares have edged down 25.8%, worse than 7.3% decline recorded by the Original post
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