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On Monday, Canaccord Genuity analysts elevated their view on Worthington Industries (NYSE:WOR) shares, upgrading the rating from Hold to Buy and increasing the price target to $67 from the previous $54. The upgrade follows a series of investor meetings with the company’s management team, including CEO Joe Hayek, CFO Colin Souza, and Treasurer Marcus Rogier. According to InvestingPro data, three analysts have recently revised their earnings upwards for the upcoming period, with price targets ranging from $44 to $69.
The discussions with Worthington’s management, which took place in late April in New York City and across the Midwest, left Canaccord analysts with a positive impression of the team’s humility and confidence. The management believes that the company is well-positioned to thrive, especially with its significant domestic manufacturing capabilities in a market affected by tariffs. The company’s strong financial position is evident in its comfortable liquidity position, with a current ratio of 3.51 and moderate debt levels. Additionally, Worthington has maintained dividend payments for an impressive 53 consecutive years, demonstrating consistent shareholder returns.
Canaccord’s initial coverage of Worthington Industries began in January 2024, with a stance that they could turn more positive on the stock as the company increased its disclosures and established a solid track record as an independent entity. Following Worthington’s fifth consecutive "clean" quarter reported in March, the firm sees a favorable manufacturing and sourcing position for the company in the current market environment.
The decision to upgrade the stock rating to Buy and raise the price target is driven by Canaccord’s increased earnings estimates for Worthington and a higher target multiple. This move reflects the firm’s growing confidence in the company’s future performance and its ability to navigate through a tariff-impacted landscape. The revised price target of $67 represents a significant increase from the previous target of $54, signaling Canaccord’s optimistic outlook on Worthington Industries’ stock.
In other recent news, Worthington Industries reported strong financial results for the third quarter of fiscal year 2025. The company exceeded analyst expectations with an adjusted earnings per share (EPS) of $0.91, outperforming the forecasted $0.70. Revenue also surpassed projections, reaching $304.5 million, compared to the anticipated $289.09 million. Despite a 4% decline in sales, the company noted an organic sales increase of 4% when excluding the impact of divestitures and acquisitions. The gross margin rose to 29.3%, a significant increase from the previous year, which contributed to the company’s strong performance in adjusted EBITDA and EPS. Canaccord Genuity responded to these results by raising Worthington’s stock price target to $54, while maintaining a Hold rating. The firm highlighted Worthington’s insulation from tariffs and noted that the results from recent product launches are still pending. Worthington Industries continues to focus on long-term growth opportunities, supported by new product launches and expanded distribution channels.
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