May. 11 at 5:11 PM
$NNBR big red flag on B Riley
. A few red flags:
• They cut the PT to
$3 in March after a weak Q4, but kept the Buy — fine, contrarian call
• Company then beats massively, raises guidance, pulls forward long-term targets by a year, stock rips 30%+
• B. Riley responds by… keeping the PT at
$3 and downgrading to Neutral
That’s backwards. The correct response to a big beat + raised guidance is usually to raise the PT and hold the Buy, then potentially downgrade later once the stock closes the gap. Instead they left the target flat after fundamentals improved, then downgraded once the stock did the work for them.
It reads like they’re just reacting to price action rather than doing forward fundamental work. The PT should logically be higher now than pre-earnings given the EBITDA guidance raise and the accelerated long-term timeline — but they didn’t touch it.
For your purposes, I’d basically ignore them on NNBR at this point.
