Acme United’s Solid 2014 Outlook Justifies Price Target Increase to Above $25

Acme United (ACU – $17.58) broke another sales record in fiscal year 2013. All brands contributed to this strong performance.

Acme United constantly introduces new tools and gains market share with its existing products, leading to growth in both revenues and earnings. The Company’s balance sheet is healthy and can handle an acquisition when the right opportunity comes along.

For 2014, Acme estimates it can increase its revenues to around $100 million, which would be a significant milestone in the Company’s history. As for its earnings, the Company gave an estimate of between $4.3 million and $4.6 million, or earnings per share between $1.26 and $1.33. With many new products, such as Camillus knives and first aid kits, lined up to enter stores, we’re confident this 2014 guidance will again be achieved.

Until we have a clearer picture of how Acme’s results develop in 2014, we’ll use the average of the Company’s sales and earnings projections in our valuation. Based on these calculations, we reiterate our buy recommendation for Acme United Corp. with a price target of $25.32, which is 44% above today’s stock price.

Download your copy of the fourth quarter 2013 Acme United Company Report.

Download Advice: BuyPrice Target: $59.86Latest Company Report (pdf)
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