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KeyBanc upgraded Myers Industries (NYSE:MYE) from Sector Weight to Overweight on Friday, setting a price target of $21.00 for the manufacturing company. The company, currently valued at $544 million, has shown strong momentum with a 33% gain year-to-date, though InvestingPro analysis suggests the stock is trading in overbought territory.
The upgrade reflects KeyBanc’s expectation of "meaningful cost restructuring and footprint rationalization" in the near term, with potential significant portfolio changes that could include exiting the distribution business entirely.
KeyBanc believes these changes will lead to lower SG&A costs, higher margins, increased free cash flow, and faster debt reduction, ultimately resulting in higher earnings power for the company.
The research firm noted that new CEO Aaron Schapper appears to be embracing his role as a change agent, with the board recognizing that "drastic changes are required to return MYE to growth and create tangible value" for stakeholders.
Myers Industries is expected to focus more resources on its plastic manufacturing businesses, with KeyBanc anticipating a formal strategy and long-term target update around November 2025, featuring a "Products That Protect" vision.
In other recent news, Myers Industries Inc . reported its first-quarter 2025 earnings, which fell short of expectations. The company announced an earnings per share (EPS) of $0.22, missing the anticipated $0.24, and posted revenue of $206.8 million, below the forecasted $216.6 million. Despite the earnings miss, the company expanded its adjusted gross margin by 80 basis points to 33.5% and improved its adjusted operating income to $18.7 million. Myers Industries is aiming for $20 million in annualized cost savings by the end of 2025 and is exploring growth opportunities in Europe for its military product line. The Material Handling segment saw a net sales increase of 3.6%, while the Distribution segment experienced a 10.3% decline. The company is also actively searching for a new CFO following the departure of Grant Phipps. Analyst discussions indicated that Myers Industries’ supply chain is predominantly U.S.-based, minimizing tariff impacts. The firm continues to focus on its transformation program, emphasizing cost control and operational efficiency.
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