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Investing.com - JPMorgan downgraded Atmus Filtration Technologies (NYSE:ATMU) from Overweight to Neutral on Wednesday, while raising its price target to $46.00 from $44.00. The stock has shown strong momentum, delivering a 33.46% return over the past year and trading near its 52-week high of $45.91.
The downgrade comes after a recent rally in Atmus shares following the company’s second-quarter earnings report, which JPMorgan believes has left limited upside potential to its updated December 2025 price target.
The investment bank’s new price target is based on approximately 12x FY1 EV/EBITDA, which is about one multiple below where peer Donaldson Company (NYSE:DCI) trades, a difference JPMorgan considers justified given Donaldson’s higher exposure to industrial and life sciences filtration compared to Atmus.
JPMorgan cited a lack of near-term catalysts for further share price appreciation, pointing to weakness in freight and truck end markets and uncertainty surrounding the ongoing Section 232 investigation for commercial vehicles.
The firm noted that potential entry into industrial filtration through mergers and acquisitions could serve as a future catalyst for valuation improvement, but until such developments materialize, it prefers to remain neutral on the stock.
In other recent news, Atmus Filtration Technologies Inc. reported impressive financial results for the second quarter of 2025. The company posted earnings per share of $0.75, significantly exceeding the anticipated $0.52, marking a 44.23% earnings surprise. Revenues also surpassed expectations, reaching $454 million compared to the forecasted $419.4 million. In addition to the strong earnings performance, Atmus Filtration Technologies announced a 10% increase in its quarterly dividend. The new dividend is set at $0.055 per common share, up from the previous $0.05 per share. This dividend will be payable on September 10, 2025, to shareholders of record as of August 26, 2025. These recent developments highlight a period of robust financial health and shareholder returns for the company.
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