Market Overview

UPDATE: D.A. Davidson Initiates Coverage on Albany International Corp. on Strong Cashflow, Growth Opportunities

Share:

In a report published Tuesday, D.A. Davidson analyst JB Groh initiated coverage on Albany International Corp. (NYSE: AIN) with a Buy rating and $43.00 price target.

In the report, D.A. Davidson noted, “Our target is based on a sum-of-the-parts type valuation. We are valuing Albany's Machine Clothing (MC) business as a 5x EV/EBITDA multiple and the Albany Engineered Composites (AEC) business at $300 million (based on a recent transaction with Safran and industry average multiples once AEC ramps up). AIN operates in two reporting segments: Machine Clothing and Albany Engineered Composites. Machine Clothing is a consumable product used on paper-making machines and offers Albany strong cashflow in a relatively stable environment (2%-3% growth per year). The segment is not capital intensive, thereby permitting AIN to spend its excess cash flow on new and existing opportunities on the AEC side of the business. We view the MC segment as a stable, almost bank-like, source of income that will help AIN fund most of AEC's new projects in the near future.”

Albany International Corp. closed on Monday at $33.42.

Latest Ratings for AIN

DateFirmActionFromTo
Jun 2020Sidoti & Co.DowngradesBuyNeutral
Apr 2020B of A SecuritiesReinstatesBuy
Mar 2020BairdUpgradesNeutralOutperform

View More Analyst Ratings for AIN
View the Latest Analyst Ratings

 

Related Articles (AIN)

View Comments and Join the Discussion!

Posted-In: D.A. Davidson JB GrohAnalyst Color Initiation Analyst Ratings

Latest Ratings

StockFirmActionPT
XNCRSVB LeerinkMaintains42.0
TWLOPiper SandlerMaintains300.0
TECHSVB LeerinkMaintains285.0
PAYCPiper SandlerUpgrades328.0
ZBHSVB LeerinkMaintains153.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com