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Investing.com - Northland upgraded Mayville Engineering (NYSE:MEC) from Market Perform to Outperform while setting a price target of $18.00. According to InvestingPro data, MEC currently trades at a P/E ratio of 15.7 and shows a significant free cash flow yield of 25%, suggesting potential upside from current levels.
The upgrade comes despite Mayville Engineering reporting second-quarter 2025 results below consensus and lowering its full-year 2025 guidance.
Northland noted that MEC continues to generate solid free cash flow and believes the company is well-positioned for a return to growth in fiscal year 2026 as commercial vehicle, construction, and agriculture OEM production and dealer inventories align with demand.
MEC shares traded down sharply last week, testing a $12 support level which held firm, according to Northland’s analysis.
The research firm expects Mayville Engineering shares to trend higher as investor confidence increases in the company’s growth prospects for fiscal year 2026.
In other recent news, Mayville Engineering reported its second-quarter 2025 earnings, showcasing a mixed financial performance. The company exceeded earnings per share (EPS) expectations, posting $0.10 compared to the anticipated $0.08, marking a 25% beat. However, revenue fell short, reaching $132.3 million against the projected $137.97 million. DA Davidson responded to these results by lowering its price target for Mayville Engineering from $23.00 to $18.00, although it maintained a Buy rating. The firm cited challenging conditions in the truck market segment as a reason for the company’s reduced 2025 guidance. Despite the positive EPS outcome, investor concerns were evident, given the revenue shortfall. These developments reflect the current landscape and challenges faced by Mayville Engineering.
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