Bank of America just raised its EUR/USD forecast
On Monday, BWS Financial upgraded Hawkins (NASDAQ:HWKN) stock rating from Buy to Buy, setting a price target of $160.00. The upgrade comes as the stock has already delivered an impressive 49.61% return over the past year and gained 8.83% in the last week alone. The adjustment reflects a positive outlook for the company’s business amid changing trade dynamics between the United States and China. According to InvestingPro analysis, the stock currently trades at a premium valuation with a P/E ratio of 29.68.
Hawkins has shown signs of business improvement since the end of 2024, with further advancements as Chinese production began to decrease earlier this year. The company maintains strong financial health with a comfortable current ratio of 2.5 and operates with moderate debt levels. The potential for tariffs and an escalating trade war with China is expected to increase demand for specialty chemicals produced domestically in the U.S. InvestingPro subscribers can access 10+ additional insights about Hawkins’ financial strength and growth potential.
The industrial chemicals sector had seen a downward trend in prices due to the competitiveness of Chinese imports. However, the current trade situation alters the landscape, potentially benefiting Hawkins by leveraging the earnings power of its business.
Over the past three years, the industrial segment of Hawkins faced challenges, with volumes declining due to intense competition from China, leading to price reductions and customers opting for cheaper alternatives. BWS Financial’s upgraded rating and new price target reflect a renewed confidence in Hawkins’ ability to capitalize on these market shifts.
In other recent news, Hawkins Inc. completed the acquisition of Amerochem Corporation’s assets, marking its 50th water treatment location in the United States. This strategic move is expected to enhance Hawkins’ operational footprint and growth within the water treatment industry. The acquisition was well-received by both companies, with Amerochem’s President, Woodrow "Woody" Wright, expressing confidence in Hawkins to continue Amerochem’s legacy. Additionally, Hawkins reported a revenue of $919 million in fiscal 2024, underscoring its solid market position.
In another development, Hawkins Inc. announced a change in its independent accounting firm, appointing Deloitte & Touche LLP as the new auditor for the fiscal year ending March 29, 2026. This decision followed a competitive process and resulted in the dismissal of Grant Thornton LLP, although Grant Thornton will complete its current engagement for the fiscal year ending March 30, 2025. The change in auditors is part of Hawkins’ regular review of its accounting needs. According to the company’s SEC filing, there were no disagreements between Hawkins and Grant Thornton that affected the financial statements.
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