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Actuant Is On Track For An Earnings Recovery

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Actuant Is On Track For An Earnings Recovery

Aegis Capital maintains its Buy rating on Actuant Corporation (NYSE: ATU), saying the company’s first-quarter results showed further signs of stabilization in its key end-markets and reaffirmed the brokerage’s thesis of earnings rebound in the second-half of fiscal year 2017.

“We anticipate the earnings ramp to be driven by a) sharply improving YoY comps in all three segments; b) backend loaded restructuring savings; and c) product range expansion at Industrial segment including 2nd tier brands in Americas (Simplex) and Europe (Larzep),” analyst Igor Maryasis wrote in a note.

In addition, the potential industrial recovery in the United States should boost the company’s results, while the analyst expects an inflection in sales at Actuant’s most profitable Industrial segment later this fiscal year.

Further, Maryasis projects Hydratight business to return to normalized low-single digit sales growth, driving Energy comps to return to positive growth in the first half of fiscal 2018.

“We believe that even in a modest recovery, Industrial segment’s high operating leverage, restructuring savings, as well as stabilization and eventual growth at Energy, all supplemented by strategic M&A, could allow the company to double its EBITDA over the next 3–4 years,” Maryasis added.

The analyst has a price target of $30 on the stock, which closed Friday’s trading session at $26.75.

Latest Ratings for ATU

DateFirmActionFromTo
Sep 2019MaintainsNeutral
Sep 2019DowngradesBuyHold
Sep 2019DowngradesOverweightSector Weight

View More Analyst Ratings for ATU
View the Latest Analyst Ratings

Posted-In: Analyst Color Earnings Long Ideas News Price Target Reiteration Analyst Ratings Trading Ideas Best of Benzinga

 

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