Tuesday, September 17, 2013

Seeking Alpha: MTS Systems Isn't Afraid Of Bold Expectations

For many companies, the role of CEO comes down to carefully massaging expectations such that institutional shareholders stay happy and stock options end up in the money. That sort of attitude doesn't lead to much in the way of boldness, and it probably goes some length to explain just why "average" performance is often so mediocre.

MTS Systems (MTSC) isn't like that, though. Management here has laid out bold targets - compound revenue growth of over 10% through 2018 and doubling revenue to $1 billion. Double revenue in six years would be aggressive for most companies, let alone a company that serves cyclical industries like autos and aerospace and competes with large companies like Illinois Tool Works (ITW) and Moog (MOG.A). While I'm not 100% convinced that management will hit that market (it's a goal, not a guarantee), I do believe that even a "near miss" would make these shares undervalued at today's price.

Please continue here:
MTS Systems Isn't Afraid Of Bold Expectations

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