Fed Governor Adriana Kugler to resign
On Thursday, DA Davidson reaffirmed a Buy rating for Alta Equipment Group (NYSE:ALTG) with a consistent price target of $11.00. The firm’s analysis followed Alta Equipment Group’s release of its fourth-quarter financial results for the year ending 2024. Alta reported quarterly sales of $498 million, a 5% decrease compared to the previous year but surpassing DA Davidson’s pre-report estimates by $23 million. This beat was primarily due to a positive variance of $33 million in the Construction Equipment (CE) sector. According to InvestingPro data, the company’s annual revenue stands at $1.88 billion, with the stock currently trading near its 52-week low of $4.65.
The report highlighted that the outperformance in the CE sector was partially negated by lower-than-expected results in the Material Handling (MH) and Master Distribution (MD) sectors, with variances of $6 million and $4 million, respectively. The analysis pointed out that equipment demand in both the MH and CE sectors seems to be continuing its weak trend, influenced by persistent macroeconomic and geopolitical challenges. InvestingPro analysis reveals the company operates with a significant debt burden, reflected in its debt-to-equity ratio of 15.45x, though it maintains a healthy current ratio of 1.34x. Despite these headwinds, inventory levels are slightly higher than usual, with an anticipation of a return to normal levels in the upcoming year.
Alta Equipment Group also provided its EBITDA guidance for the full year of 2025. The midpoint of the guidance, at $183 million, was below DA Davidson’s own projections but still exceeded the general market consensus. The guidance reflects the company’s expectations amidst the current market conditions.
The reaffirmation of the Buy rating and the $11.00 price target by DA Davidson suggests their confidence in Alta Equipment Group’s performance and valuation, despite the mixed financial results and the cautious outlook for the equipment demand and inventory normalization in the near future.
In other recent news, Alta Equipment Group Inc. reported its financial results for the fourth quarter of 2024, showing a 4.5% year-over-year decline in revenue to $498.1 million. The company’s full-year revenue remained flat at $1.88 billion compared to 2023. Alta Equipment implemented cost optimization measures, resulting in annual savings of approximately $8 million. The company’s adjusted EBITDA for 2024 was $168.3 million, down from $201 million in 2023. Looking ahead, Alta Equipment projects its adjusted EBITDA for 2025 to be between $175 million and $190 million, anticipating growth despite current market challenges. The company faced a difficult macroeconomic environment, with an oversupply in the construction equipment market impacting sales volumes and margins. Alta Equipment remains focused on operational efficiency and strategic capital allocation to drive future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.