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Investing.com - RBC Capital lowered its price target on Atkore (NYSE:ATKR) to $60.00 from $83.00 on Wednesday, while maintaining a Sector Perform rating on the stock. The stock, which has declined over 31% year-to-date, currently trades at an EV/EBITDA multiple of 5.92x.
The price target reduction follows Atkore’s fiscal third-quarter 2025 results, which met expectations, and a below-consensus guidance that disappointed investors. According to InvestingPro data, the company maintains strong financial health with a current ratio of 3.09, indicating solid liquidity despite recent challenges.
The company announced an unexpected CEO retirement, which RBC Capital noted "injects a new worry of leadership continuity/uncertainty into the investment thesis which has become steadily commoditized with new competitive threats."
RBC Capital highlighted that price and margin normalization has been extended into the first half of fiscal 2026, with aluminum tariffs presenting an additional "unquantified headwind" for the company.
The firm suggested that Atkore’s valuation reset to an implied EV/EBITDA multiple of less than 8x "may open the door to an activist or take-private action."
In other recent news, Atkore International Group Inc . reported its third-quarter earnings for 2025, exceeding analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $1.63, surpassing the forecasted $1.56. Revenue also slightly outperformed projections, coming in at $735 million compared to the anticipated $734.2 million. However, despite these positive results, KeyBanc Capital Markets downgraded Atkore’s stock rating from Overweight to Sector Weight. This downgrade was attributed to concerns over tariffs and a less optimistic outlook for Atkore’s Steel Conduit business. KeyBanc’s decision reflects disappointment with the company’s initial fiscal year 2026 framework. These developments highlight the mixed reactions from analysts and investors regarding Atkore’s recent performance and future prospects.
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