Navitas stock soars as company advances 800V tech for NVIDIA AI platforms
Investing.com - Wells Fargo lowered its price target on AZZ Inc. (NYSE:AZZ) to $121.00 from $128.00 on Friday, while maintaining an Overweight rating on the stock. According to InvestingPro data, AZZ appears undervalued at its current price of $100.75, with analyst targets ranging from $105 to $141.
The price target reduction follows AZZ’s disappointing August quarter results, which missed consensus EBITDA by 7%, primarily due to weak non-residential construction demand affecting the company’s Precoat segment.
Sales in the Metal Coatings segment exceeded Wells Fargo’s expectations, but the Precoat segment underperformed. Gross profit margins disappointed in both segments, resulting in an overall 110 basis point miss and a 100 basis point year-over-year decline.
The analyst specifically noted weakness in HVAC and appliance demand, which particularly impacted the Precoat segment’s performance during the quarter.
Despite management indicating signs of market conditions bottoming out, Wells Fargo has tempered its near-term forecasts due to a cautious outlook on the non-residential construction sector, while continuing to favor AZZ’s growth options.
In other recent news, AZZ Incorporated disclosed its financial performance for the second quarter of fiscal year 2026, which did not meet analyst predictions. The company’s earnings per share (EPS) were reported at $1.55, slightly under the projected $1.59. Additionally, AZZ’s revenue reached $417.3 million, missing the expected $428.79 million. These figures highlight a shortfall in both earnings and revenue compared to forecasts. Despite the earnings miss, the company continues to operate amidst these developments. The financial results have garnered attention from investors and analysts alike. This recent disclosure adds to the ongoing assessment of AZZ’s financial health and market position.
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