Bullish indicating open at $55-$60, IPO prices at $37
On Thursday, DA Davidson analysts initiated coverage of EVI Industries Inc. (NYSE: EVI) with a Buy rating and set a price target of $28, representing significant upside from the current price of $19.52. The analysts highlighted the company’s growing influence in the industrial laundry machinery sector as a key factor in their positive outlook. According to InvestingPro data, EVI has demonstrated strong momentum with an 18% year-to-date return.
The analysts noted that EVI is establishing a strong presence across the nation by expanding its user and master-distribution network. They emphasized the company’s strategy of consolidating mergers and acquisitions to create a unified platform, which they believe will lead to significant profitability. The company’s financial health appears solid, with InvestingPro showing a healthy current ratio of 1.51 and moderate debt levels at 24% of equity.
The report mentioned that EVI’s rapid consolidation efforts are positioning it as a dominant player in a fragmented industry. Analysts believe that the company’s head start in this niche market makes it difficult for competitors to catch up.
DA Davidson’s price target of $28 reflects confidence in EVI’s potential to achieve a double-digit EBITDA margin and maintain a robust return on invested capital. The analysts advised investors to consider EVI’s stock favorably, given its strategic advancements in the industry.
In other recent news, EVI Industries reported record revenues of $94 million for the first quarter of 2025, showcasing strong operational performance and strategic acquisitions. The company also achieved record gross profits of $28 million during this period. EVI Industries highlighted its largest acquisition to date, Gerbau North America, which is expected to enhance the company’s market presence and operational scale. The integration of Gerbau’s operations is anticipated to create significant synergies and expand customer reach across the United States. The firm has also focused on technological advancements to improve service and operational efficiency. EVI Industries generated $9 million in operating cash flow for the quarter, reflecting the efficiency of its business model. The company maintains over $175 million in liquidity following a credit facility amendment. Analysts from various firms have noted EVI Industries’ strategic growth through acquisitions and technology investments as key drivers for its future success.
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