Market Overview

Sidoti Upgrades Herman Miller On Prospects Of Order Growth Rebound

Sidoti Upgrades Herman Miller On Prospects Of Order Growth Rebound

Herman Miller, Inc. (NASDAQ: MLHR) had witnessed a slowdown in order growth in the second quarter of fiscal 2020, sending the stock down 22%. The company’s order growth is likely to bounce back, given the strong market fundamentals, according to Sidoti.

The Analyst

Sidoti’s Gregory Burns upgraded Herman Miller from Neutral to Buy, while raising the price target from $43 to $47.

The Thesis

Herman Miller’s earnings release in December reflected lower-than-expected order growth and consequently a disappointing sales forecast for the February quarter, Burns said in the note.

He added, however, that the order growth slowdown seems to be “more of a company specific pocket of weakness,” rather than a general downturn in the demand for office furniture.

The analyst attributed the slowdown mainly to project timing issues, adding that the pipeline of late stage project opportunities had risen by 11% in North America in the second quarter.

The company’s North America business does contribute over 60% of total sales, which is why it is in focus, but the International Contract segment is likely to be a growth catalyst, Burns said. He added that Herman Miller also had the opportunity to boost profitability of the Retail segment.

Price Action

Shares of Herman Miller had spiked more than 4.22% to $40.28 at time of publication.

Latest Ratings for MLHR

Sep 2020Sidoti & Co.MaintainsBuy
May 2020BenchmarkInitiates Coverage OnBuy
Feb 2020Sidoti & Co.UpgradesNeutralBuy

View More Analyst Ratings for MLHR
View the Latest Analyst Ratings


Related Articles (MLHR)

View Comments and Join the Discussion!

Posted-In: Gregory Burns SidotiAnalyst Color Upgrades Price Target Analyst Ratings

Latest Ratings

FBJP MorganMaintains315.0
RPTXNorthland Capital MarketsInitiates Coverage On
PCSACraig-HallumInitiates Coverage On12.0
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