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Investing.com - William Blair has reiterated its Market Perform rating on Lindsay Corporation (NYSE:LNN), citing a lack of significant catalysts in the near term for the irrigation industry. According to InvestingPro data, Lindsay trades at a P/E ratio of 20.5x and has demonstrated revenue growth of 9.46% over the last twelve months.
The irrigation industry has been relatively soft for the past three years, according to William Blair, which expects earnings to contract over the next year due to uncertain market outlook and difficult year-over-year comparisons. Despite these challenges, Lindsay maintains strong financial health with an InvestingPro Overall Score of "GOOD" and has increased its dividend for 22 consecutive years.
While William Blair anticipates significant long-term growth in Lindsay’s international irrigation business, uncertainty in the Brazilian market and difficult comparisons following the completion of a project in the MENA region will likely weigh on growth over the next year.
In Lindsay’s infrastructure business, a recently completed road zipper project creates a difficult comparison for fiscal 2026, further contributing to the challenging outlook.
William Blair views Lindsay stock as fully valued at current levels, given the combination of uncertain irrigation market conditions and the difficult comparisons the company faces in both its major business segments.
In other recent news, Lindsay Corporation reported impressive financial results for the third quarter of fiscal year 2025, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $1.78, exceeding the forecast of $1.41, and revenue reached $169.5 million, outperforming the anticipated $157.87 million. A significant contributor to this success was a 25% increase in the irrigation segment, which generated $143.7 million in revenue. Additionally, Lindsay secured a new $20 million project in the Middle East and North Africa (MENA) region, further enhancing its international expansion efforts.
In another development, Lindsay announced a 3% increase in its quarterly cash dividend, raising it to $0.37 per share, which will be payable on August 29, 2025. Stifel maintained a Hold rating on Lindsay with a $136 price target, acknowledging the company’s strong international project performance despite a softer domestic irrigation market. The firm noted that Lindsay’s execution on a large MENA irrigation project bolstered its latest quarterly results. Moreover, Lindsay’s strategic focus on precision irrigation technology and international expansion is expected to drive continued growth, particularly in Brazil and the MENA region.
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