B.Riley initiates coverage on NN, Inc stock with Buy rating and $4 target

Investing.com - B.Riley initiated coverage on NN , Inc (NASDAQ:NNBR) with a Buy rating and a $4.00 price target on Thursday. The company, currently trading at $1.95 with a market cap of $98 million, has seen its stock decline over 50% in the past year. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.

The research firm described NN as a "best-in-class developer and primarily Tier 2 manufacturer of high-precision (sub-micron), complex metal components" with extensive experience in machining, stamping, and precious metal plating. InvestingPro data reveals the company operates with a significant debt burden, with a debt-to-equity ratio of 3.07, though its current ratio of 1.92 indicates adequate liquidity to meet short-term obligations.

B.Riley noted that NN’s "’beyond reliable’ tagline is predicated on its longstanding history of delivering quality stamped and machined products" from its global manufacturing platform to strategic partners including BYD (SZ:002594), Bosch (NSE:BOSH), Cummins (NYSE:CMI), ZF, and Nexteer in the automotive sector.

The company also serves customers such as Itron (NASDAQ:ITRI), ABB (ST:ABB), and Schneider in the electrical power market, according to the research note.

While B.Riley believes NN’s reputation for quality is "unquestioned and well-deserved," it acknowledged that prior management faced supply chain difficulties during the COVID pandemic, which affected the company’s ability to meet on-time delivery and volume requirements.

In other recent news, NN Inc. reported its first-quarter 2025 earnings, showing a flat adjusted EBITDA and a slight decline in net sales. Although the company’s earnings per share met expectations, the revenue did not meet forecasts. This earnings report has been a significant development for the company. In another update, NN Inc. appointed Timothy Erro as Vice President and Chief Commercial Officer. He will lead the global commercial team, reporting directly to President and CEO Harold Bevis. This leadership change is part of the company’s strategy to expand its new business program. These recent developments highlight key changes and challenges for NN Inc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.