Functional Brands closes $8 million private placement and completes Nasdaq listing
Investing.com - JPMorgan has initiated coverage on Alliance Laundry Holdings (NYSE:ALH) with an Overweight rating and a price target of $31.00, representing approximately 17% potential upside from the current price of $26.50. According to InvestingPro data, ALH is currently trading near its 52-week high of $27.00 and sports a high P/E ratio of 58.97, suggesting the market may already be pricing in significant growth expectations.
The firm views Alliance Laundry as a "mission-critical platform company" operating in a structurally resilient and underappreciated industrial niche, with top market share, high EBITDA margins, and strong replacement revenue exposure. InvestingPro data confirms the company’s solid financial health with EBITDA of $398.81 million for the last twelve months and a healthy gross profit margin of 37.17%.
JPMorgan forecasts a high-single-digit revenue compound annual growth rate through 2028, driven by durable replacement demand, strong product offerings, and digital monetization opportunities.
The investment bank also expects margin expansion for Alliance Laundry, which recently went public on October 9, 2025, with adjusted free cash flow conversion projected to remain high in 2026.
Net leverage is forecast to decline significantly to 2.2x in 2026 from approximately 4.5x pre-IPO, according to JPMorgan’s analysis of the laundry equipment company’s financial outlook.
In other recent news, Alliance Laundry Holdings has announced the pricing of its upsized initial public offering at $22 per share. The offering includes 37,560,974 shares, with 24,390,243 shares being sold by the company itself, while the remaining shares are being sold by a stockholder. Alliance Laundry will not benefit from the proceeds of the stockholder’s shares. Additionally, several investment firms have initiated coverage on Alliance Laundry stock. Baird has given the stock an Outperform rating with a price target of $31.00, highlighting the company’s strong financial profile. UBS has also initiated coverage with a Buy rating and the same price target, citing superior revenue growth and margin profiles. BMO Capital has followed suit with an Outperform rating and a price target of $30.00, emphasizing Alliance’s dominant market position. These developments reflect a positive outlook from analysts regarding Alliance Laundry’s market performance.
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