DA Davidson reiterates Buy rating on Aebi Schmidt stock with $15 target

Published 19/08/2025, 13:46
DA Davidson reiterates Buy rating on Aebi Schmidt stock with $15 target

Investing.com - DA Davidson reiterated its Buy rating and $15.00 price target on Aebi Schmidt Holding AG (NASDAQ:AEBI), representing a 26% upside from the current price of $11.90, following the company’s second-quarter 2025 results. The company, with a market capitalization of $912 million, has shown strong momentum with a 3.57% gain over the past week.

The research firm noted that while results were "messy" due to the recent merger, the company’s second-half 2025 outlook exceeded DA Davidson’s estimates at the midpoint.

DA Davidson expressed surprise at the modest stock decline following the earnings release, given the positive outlook.

The firm highlighted that Aebi Schmidt’s previously challenged final-mile vehicles business "appears to finally be on the rise again," with strong performance expected in the fourth quarter.

Despite the transitional complexity in financial reporting following the merger, DA Davidson characterized Aebi Schmidt as "a very inexpensive opportunity for investors" after analyzing the company’s numbers and outlook. This view is supported by InvestingPro’s Fair Value analysis, which suggests the stock is currently undervalued, despite trading at a P/E ratio of 36.2. InvestingPro subscribers have access to 7 additional key insights about AEBI’s valuation and growth prospects.

In other recent news, Aebi Schmidt Holding AG reported a net loss for the second quarter following its merger with The Shyft Group. The company posted second-quarter sales of $277.7 million, a 4.2% increase from the previous year, but recorded a net loss of $2.3 million compared to a net income of $8.2 million a year earlier. The merger, completed on July 1, resulted in a strong $1.1 billion order backlog as of June 30. Aebi Schmidt expects to achieve synergies of at least $25 to $30 million from the merger, with further potential upside. The integration efforts are reportedly progressing well. Meanwhile, BTIG initiated coverage on Aebi Schmidt with a Neutral rating. The company has also commenced trading on the Nasdaq under the ticker "AEBI" following the merger. The Shyft Group’s final trading day was June 30, and the merger involved a share exchange ratio of approximately 1.04.

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