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Investing.com - DA Davidson downgraded Alta Equipment Group (NYSE:ALTG) from Buy to Neutral on Monday, maintaining an $8.00 price target amid concerns over tariff impacts and sluggish market activity. According to InvestingPro data, the stock has shown significant volatility with a beta of 1.59, though it has delivered a strong 24.88% return year-to-date.
The downgrade follows Alta Equipment Group’s second-quarter 2025 results, which prompted DA Davidson to reduce its adjusted EBITDA outlook for 2025 and 2026. The firm cited tariff headwinds affecting the company’s Material Delivery segment and ongoing sluggish activity in Material Handling as key factors behind the revised outlook. InvestingPro analysis indicates the company currently maintains a Fair financial health rating, though it hasn’t been profitable over the last twelve months.
While demand within the Construction Equipment segment remains stable, the research firm noted that Material Handling product support and rental revenues are being affected by lower spending from automotive and general manufacturing customers in the Midwest region.
DA Davidson indicated the stock’s recent upward movement since its last earnings report contributed to the decision to move to a neutral stance, describing the current situation as lacking "a more material immediate catalyst."
The firm maintained its $8.00 price target on Alta Equipment Group shares despite the rating downgrade from Buy to Neutral.
In other recent news, Alta Equipment Group reported its Q2 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of -$0.11, outperforming the projected -$0.18. Additionally, Alta Equipment’s revenue reached $481.2 million, exceeding the anticipated $478.64 million. These results indicate a strong performance for the quarter. Despite the positive earnings and revenue figures, the stock price saw a decline. It is important for investors to note that these developments reflect the company’s recent financial health. Analyst reactions to these earnings results have not been specified. Investors often look to such earnings reports to gauge the company’s operational success and future prospects.
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