Stifel downgrades FARO Technologies: premium valuation, high expectations

|About: FARO Technologies, Inc. (FARO)|By:, SA News Editor

Stifel Nicolaus downgraded shares of FARO Technologies (FARO -1.8%) from Buy to Hold and removed its $50 PT.

Analyst Patrick Newton notes, "shares have eclipsed our $50 price target and our analysis indicates a neutral reward to risk profile at current levels."

Newton cites FARO's premium valuation relative to historical norms and comparables, investor expectations of "aggressive leverage and earnings power in excess of our above consensus 3015 estimates," increasing execution risk, concerns over laser scanner growth, and the negative effect current penetration levels of the Arm business may have on future growth levels.