DA Davidson reiterates Neutral rating on Hillenbrand stock

Published 13/08/2025, 16:04
DA Davidson reiterates Neutral rating on Hillenbrand stock

Investing.com - DA Davidson has reiterated its Neutral rating on Hillenbrand (NYSE:HI) stock, maintaining a $24.00 price target. According to InvestingPro data, the company appears undervalued at its current price of $25.96, with a strong dividend history of 17 consecutive years of increases.

The research firm slightly raised its fiscal year 2025 estimates while keeping fiscal year 2026 projections unchanged, citing a mixed demand environment across both the Advanced Process Solutions (APS) and Molding Technology Solutions (MTS) segments.

DA Davidson noted some recent order strength within the APS segment during July, indicating potential improvement in that business unit.

Balance sheet leverage remains a key concern for the firm, with the leverage ratio likely approaching 4.0x by fiscal year end based on current models and Hillenbrand’s reduced free cash flow projection.

The firm acknowledged that debt reduction remains Hillenbrand’s top priority, though excess cash after dividends is expected to remain negative in fiscal year 2025.

In other recent news, Hillenbrand Inc . reported its earnings for the third quarter of 2025, surpassing Wall Street expectations with an earnings per share (EPS) of $0.51, slightly above the forecasted $0.50. The company’s revenue for the quarter was $599 million, which exceeded the anticipated $572.48 million, although it represented a 24% decrease from the previous year. Additionally, Hillenbrand is exploring strategic options, including a potential sale, as reported by Bloomberg. The company has engaged an adviser to assess interest from potential buyers. Meanwhile, DA Davidson maintained its Neutral rating for Hillenbrand with a price target of $24.00, following the latest financial results. The industrial company reported pro forma revenue that exceeded analyst expectations, with a 10% decline compared to the 12%-13% drop anticipated by DA Davidson. These developments highlight the company’s current strategic and financial situation.

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