Monday, April 6, 2015

Seeking Alpha: ARC Document Solutions' Recovery Still Off Most Investors' Radar

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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