Hillenbrand stock holds Neutral rating at DA Davidson on mixed outlook

Published 12/08/2025, 15:58
Hillenbrand stock holds Neutral rating at DA Davidson on mixed outlook

Investing.com - DA Davidson maintained its Neutral rating and $24.00 price target on Hillenbrand (NYSE:HI) following the company’s latest financial results. According to InvestingPro data, the stock appears undervalued, trading significantly below its Fair Value after declining nearly 40% over the past six months.

The industrial company reported pro forma revenue that exceeded analyst expectations, with a 10% decline compared to the 12%-13% drop that had been anticipated in DA Davidson’s model.

Despite the better-than-expected revenue performance, Hillenbrand’s adjusted EBITDA came in $3 million below the analyst’s projections, primarily due to higher corporate expenses, while consolidated segment-level EBITDA matched expectations.

Hillenbrand slightly raised the midpoint of its fiscal year 2025 revenue guidance, with notable improvements in MTS EBITDA margin expectations compared to previous forecasts, though APS margins are now projected to be slightly worse than earlier estimates.

The company’s pro forma net debt currently stands at 3.7 times following the sale of its stake in TerraSource, according to the analyst report.

In other recent news, Hillenbrand Inc . reported its third-quarter 2025 earnings, surpassing Wall Street expectations. The company announced an earnings per share (EPS) of $0.51, slightly above the forecasted $0.50. Hillenbrand also reported revenue of $599 million, which exceeded the anticipated $572.48 million. However, it’s noteworthy that this revenue figure reflects a 24% decrease compared to the same period last year. Despite the earnings beat, Hillenbrand’s stock experienced a minor decline in premarket trading. The stock dipped by 0.4% to $19.70. These developments provide investors with crucial insights into the company’s recent financial performance.

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