Buy Lydall

Get on the road with Lydall (NYSE: LDL) this manufacturer of specialty industrial materials. Lydall’s July 8 purchase of Texel diversifies its business beyond the auto industry and wraps in highly profitable geosynthetic products. These products are used for roadway engineering, flood management and landscape architecture. Large gains in the profitability of its auto products and the disposal of its lower margin life sciences product line increased earnings 20% in 2015 and the acquisition of Texel promises to usher in another 20% gain in earnings. Our target is $62, but we expect to increase that as numbers start to prove the acquisitions benefits. 

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