ARC Document Solutions (NYSE:ARC)
is still an unknown name to a large swath of Wall Street. Two sell-side
analysts cover the stock and there has been no coverage on Seeking
Alpha since my piece a year ago.
During that year, though, these shares have climbed about 20% as the
company has continued to make progress in transitioning from a heavy
reliance on architecture/engineering/construction (or AEC)-based
reprographics toward managed print services, color printing, and digital
archiving.
I've been impressed with what I've seen in terms of
the company's ability to offer an expanded array of services to its
traditional customer base while also trying to expand beyond its roots
in the AEC sector. I believe ARC is still poised to benefit from a
recovering AEC sector and success in expanding outside of the AEC sector
would offer some upside. I think the shares are undervalued below $10
but a disappointing fourth quarter did cost the company some credibility
and management needs to rebuild confidence in the prospects for
consistent high single-digit/low double-digit EBITDA growth.
Read more here:
ARC Document Solutions' Recovery Still Off Most Investors' Radar
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