Stifel maintains Lindsay stock hold rating, $128 target

On Tuesday, Stifel analysts maintained a Hold rating on Lindsay Corporation (NYSE:LNN) stock with a steady price target of $128.00. According to InvestingPro data, the company maintains strong financial health with a GOOD overall score, though four analysts have recently revised their earnings estimates downward for the upcoming period. The firm’s analysis was based on a recent survey of 50 domestic irrigation dealers which indicated a decrease in sentiment compared to previous assessments. The survey revealed that dealers now anticipate a 1.2% decline in volume over the next 12 months, a slight dip from the -0.4% expected earlier.

Over the past three months, ending in the third fiscal quarter of 2025 (F3Q25), dealers reported a 3.1% decrease in domestic volume, albeit with a 1.5% increase in prices. This performance fell short of the -1.0% year-over-year (y/y) dealers had predicted for the same period three months prior. Stifel’s regression model, which has an R-Square of approximately 0.63, forecasts a 3.3% drop in F3Q25 domestic sales, aligning closely with dealer responses and Stifel’s previous estimate of a 1.0% decline.

Looking ahead, dealers expect volumes to continue to fall by 1.1% y/y over the next three months and by 1.2% y/y over the next year. Historically, dealers tend to underestimate the extent of volume changes in both directions. Despite the anticipated volume decrease, pricing seems to be on an upward trajectory, with a 1.5% y/y increase reported this quarter compared to a modest 0.2% y/y increase in the previous survey. Furthermore, 51% of the dealers surveyed expect prices to rise further in the upcoming months.

The Stifel report reflects a cautious outlook on Lindsay Corporation’s near-term performance, with the projected decrease in dealer volumes tempered by potential price increases. This sentiment aligns with the company’s modest revenue growth of 0.46% over the last twelve months and a P/E ratio of 19.5x, which InvestingPro analysis indicates is high relative to near-term earnings growth. The company is scheduled to report its next earnings on June 26, 2025. This balance of factors contributes to Stifel’s decision to reiterate the Hold rating and $128.00 price target for Lindsay Corporation shares.For deeper insights into Lindsay Corporation’s valuation and growth prospects, including exclusive ProTips and comprehensive financial analysis, explore the full Pro Research Report available on InvestingPro.

In other recent news, Lindsay Corporation reported record-breaking net earnings and earnings per share (EPS) for the second quarter of 2025, with an EPS of $2.44, significantly surpassing the forecast of $1.79. The company’s revenue also exceeded expectations, reaching $187.1 million against a forecast of $174.5 million. This strong performance was bolstered by the completion of a $20 million Road Zipper System project and ongoing benefits from a major irrigation project in the Middle East and North Africa region. Despite these achievements, Stifel analysts recently adjusted their outlook on Lindsay Corporation, reducing the stock price target from $134.00 to $128.00, while maintaining a Hold rating. This revision reflects concerns about potential U.S. export barriers on agricultural commodities, which could lead to an oversupply and price drops. However, Stifel also noted potential international growth opportunities for Lindsay, particularly in countries like Brazil and Argentina, which might invest to fill gaps created by U.S. trade policy changes. Lindsay Corporation’s management remains optimistic, focusing on strategic price increases and leveraging their global footprint to navigate the challenging tariff environment.

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