Boenning & Scattergood initiated coverage of FLIR Systems Inc. (NASDAQ:FLIR) today with a Market Perform rating. FLIR Systems designs, develops, and markets advanced infrared imaging systems. The company’s strong brand name, large distribution network, and broad product line have made FLIR a global leader in the infrared imaging marketplace. While we currently have concerns regarding FLIR’s valuation and sustainability of operating margins but we are attracted to the story for the following reasons:
- Uniquely positioned as an infrared technology market leader, FLIR Systems is successfully leveraging its strong brand name, vast distribution channel, and sizable product line to drive compelling top and bottom line growth, while maintaining its industry leading margin structure.
- Highly successful corporate strategy — which is anchored by vertical integration and commercial off-the-shelf philosophies — should continue to allow the company to exploit highly elastic end-markets and capitalize on multiple growth opportunities in both the commercial and government sectors.
- Favorable supply and demand side dynamics are creating an optimal setting for advanced imaging providers.
About Boenning & Scattergood: Founded in 1914, Boenning & Scattergood, Inc. is the oldest independently owned investment securities firm in the Philadelphia region. The firm offers a full compliment of investment services to institutional, retail and corporate clients, including research, sales, trading, investment banking and public finance. For more information, please visit www.boenninginc.com.
This release is neither an offer to sell nor a solicitation to buy any securities mentioned herein. Please refer to the full report, which is available upon request, for additional details and disclosures.
Contacts:
Michael F. Ciarmoli,
610-684-5413
mciarmoli@boenninginc.com
