ULBI - Ultralife Corporation: Ready To Surge
2024-04-22 11:36:01 ET
Summary
- ULBI is likely to deliver above-market returns in the next two years, with improving fundamentals and a modest valuation.
- They should benefit from growth in the battery market and increased military spending.
- Management is delivering on growth and margin improvement; EPS could double in 2024.
- With a strengthened balance sheet, they seem poised to start deleveraging rapidly.
Thesis
I believe Ultralife Corporation ( ULBI ) will deliver above-market returns over the next two years. While the potential upside is lower than some other companies I follow, the downside seems supported by improving fundamentals and a modest multiple. I consider ULBI a strong buy.