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On Wednesday, KeyBanc Capital Markets adjusted its outlook on Atkore International Group Inc . (NYSE: NYSE:ATKR), increasing the price target from $70.00 to $80.00. The firm maintained its Overweight rating on the stock. The adjustment comes in response to Atkore’s second fiscal quarter 2025 earnings, which provided evidence that current tariffs are benefiting the company. According to InvestingPro analysis, Atkore currently appears undervalued, with the stock trading at an attractive P/E ratio of 12.4x and showing strong financial health metrics.
Jeffrey Hammond, an analyst at KeyBanc, expressed confidence in the positive impact of tariffs on Atkore’s business. According to Hammond, the tariffs have alleviated some of the pricing pressures from imports in the Metal/PVC conduit segment. This development has reinforced the firm’s positive stance on Atkore’s risk/reward balance moving forward. InvestingPro data shows the company maintains a healthy current ratio of 3.02 and operates with a moderate debt level, supporting its ability to navigate market challenges.
The analyst’s remarks underscored that while Atkore’s outlook has not yet fully factored in the improved dynamics from the current tariff structure, there is potential for an upside. Hammond’s analysis suggests that if the existing tariffs remain unchanged, Atkore could see further benefits.
Atkore’s performance in the second fiscal quarter has been a critical factor in KeyBanc’s reassessment. The company has shown resilience in a market affected by tariff regulations, turning potential challenges into opportunities for stronger pricing strategies.
KeyBanc’s revised price target of $80.00 for Atkore shares reflects the firm’s belief in the ongoing positive effects of tariffs on the company’s financial health. This new target represents a notable increase from the previous target of $70.00, signaling KeyBanc’s confidence in Atkore’s continued growth and profitability. For deeper insights into Atkore’s valuation and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 14 additional ProTips and detailed financial metrics in the Pro Research Report.
In other recent news, Atkore International Group Inc. reported a strong second quarter for 2025, surpassing both earnings per share (EPS) and revenue expectations. The company achieved an EPS of $2.04, significantly higher than the forecasted $1.58, and reported revenue of $701.7 million, slightly above the anticipated $698.5 million. Despite these positive results, Atkore’s stock experienced a decline in premarket trading. The company maintained its full-year guidance, projecting adjusted EBITDA between $375 million and $425 million and adjusted EPS between $5.75 and $6.85. Analysts from firms such as CJS Securities and KeyBanc inquired about the impact of tariffs and the $128 million non-cash impairment charge related to certain long-lived assets. Atkore’s management addressed these concerns, highlighting the ongoing strength in the data center and construction markets. The company also emphasized its strategic focus, including the divestiture of Northwest Polymers and a new labor agreement with the United Steel Workers.
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