Intel stock spikes after report of possible US government stake
On Thursday, B.Riley initiated coverage on SPX Technologies (NYSE:SPXC) with a Buy rating and a price target of $195.00. According to InvestingPro data, the stock currently trades at $153.97, with analysts’ targets ranging from $160 to $195, suggesting potential upside. The company’s shares have delivered strong returns, gaining nearly 9% over the past year. The firm’s analysis highlighted SPX Technologies as a global provider of specialized engineered solutions in the HVAC and detection and measurement (D&M) sectors, noting its strong track record of growth both organically and through strategic acquisitions.
SPX Technologies has been concentrating on enhancing its revenue and margins by focusing on high-value offerings. The company’s product portfolio, which emphasizes sustainability, and its established brands are seen as differentiators in the market. According to B.Riley, these brands are leading in their respective markets, with about 90% of SPX Technologies’ revenue coming from brands that hold either the number one or number two market position.
The firm’s profitability is attributed to its scale and ongoing enhancements through the application of 80/20 principles, which focus on the most profitable aspects of the business. Replacement sales, which represent approximately two-thirds of the company’s revenue, provide a stable foundation for its financial health. InvestingPro analysis shows the company maintains a healthy gross profit margin of 40.7% and operates with moderate debt levels. Get access to 10+ additional ProTips and comprehensive financial analysis with an InvestingPro subscription.
B.Riley also pointed out that SPX Technologies is in the initial phase of a digital transformation that is expected to increase high-margin recurring revenue. This transformation is particularly impactful within the D&M segment, where nearly all products are linked to software, further driving the company’s profitability.
The analyst from B.Riley expressed confidence in SPX Technologies’ future, stating, "We believe that the established organic business is on solid footing." This optimism is based on the company’s successful strategy of maintaining its position at the upper end of the value chain and offering a portfolio of products that stand out for their engineering and sustainability features. The company’s financial strength is reflected in its "GREAT" overall health score from InvestingPro, with strong metrics across growth, profitability, and price momentum dimensions.
In other recent news, SPX Technologies reported a strong start to 2025 by surpassing earnings per share (EPS) expectations for the first quarter. The company achieved an adjusted EPS of $1.38, exceeding the projected $1.18, though revenue fell short at $482.6 million against the anticipated $507.6 million. Despite the revenue miss, the company raised its full-year EPS guidance, indicating confidence in future performance. SPX Technologies also announced the acquisition of Sigma and Omega, aimed at enhancing its HVAC segment. This acquisition is expected to contribute significantly to the company’s growth, particularly in the North American market. Additionally, the company held its 2025 Annual Meeting of Stockholders, where three directors were elected, and Deloitte & Touche LLP was ratified as the independent accounting firm. Furthermore, a non-binding advisory vote approved the compensation of named executive officers. These recent developments highlight SPX Technologies’ strategic efforts to bolster its market position and drive long-term growth.
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