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Investing.com - DA Davidson raised its price target on Northwest Pipe Company (NASDAQ:NWPX) to $70.00 from $60.00 on Friday, while maintaining a Buy rating on the stock. The company currently trades at a P/E ratio of 15.21 with a notably low PEG ratio of 0.47, suggesting potential undervaluation relative to its growth prospects.
The research firm cited solid execution in the third quarter as a key factor for the price target increase, noting active bidding and backlog build opportunities heading into the fourth quarter of 2025. This performance is reflected in the company’s perfect Piotroski Score of 9, indicating exceptional financial health across multiple metrics.
DA Davidson expects elevated cash generation to continue for the water infrastructure products manufacturer, strengthening the company’s financial position.
The firm’s analysis suggests industry consolidation in the precast sector has become more active recently, with Northwest Pipe potentially positioned to participate in acquisition opportunities due to its increasing liquidity.
The new $70 price target is based on 9x 2026 EBITDA estimates and 8x 2027 EBITDA estimates, according to DA Davidson’s research note.
In other recent news, NWPX Infrastructure Inc. reported impressive second-quarter results for 2025, surpassing both earnings and revenue forecasts. The company achieved earnings per share of $0.91, outperforming the expected $0.72, which represents a 26.39% surprise. Revenue reached $133.2 million, exceeding the forecasted $120.93 million and marking a 10.15% surprise. Additionally, NWPX Infrastructure extended the maturity date of its credit agreement to August 13, 2030, with Wells Fargo Bank and other lenders, while also reducing pricing terms. The credit facility, originally established in 2021, includes a revolving loan, swingline loan, and letters of credit amounting to $125 million, with an option to increase by an additional $50 million. These recent developments indicate a strong financial position for NWPX Infrastructure, drawing positive attention from investors and analysts alike.
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