UPDATE: D.A. Davidson & Co. Reiterates Buy Rating, Raises PT on Valmont Industries on Undervalued Story with Meaningful Growth Prospects

In a report published Monday, D.A. Davidson & Co. analyst Brent Thielman reiterated a Buy rating on Valmont Industries VMI, and raised the price target from $190.00 to $200.00. In the report, D.A. Davidson & Co. noted, “Valmont reported earnings for its third quarter of $2.10 per share compared to $2.12 last year and our estimate of $2.52. Consensus was $2.43. The company absorbed a $0.31 per share non-cash expense for a deferred tax asset reduction (earnings were $2.41 excluding). Operating income of $109.9 million was essentially in line with our expectation. All segments reported margin expansion. Sales increased 7% year-over-year, below our estimate due to lower Utility sales, reflecting deferred orders into Q4. Irrigation sales increased 12% year-over-year. Operating margins increased 50bp. Both North American and international markets increased. Due to more typical timing of harvest this year, Q4 results may not meet last year's levels when harvest occurred unusually earlier. Valmont withheld projections for next year, though did not indicate a meaningful decline is anticipated.” Valmont Industries closed on Friday at $134.09.