Stifel raises Lindsay stock price target to $134 from $130

Published 04/04/2025, 13:42
Stifel raises Lindsay stock price target to $134 from $130

On Friday, Stifel analysts increased the price target on Lindsay Corporation (NYSE:LNN) shares to $134.00, up from the previous $130.00, while maintaining a Hold rating on the stock. The adjustment follows Lindsay Corporation’s robust earnings performance, which was bolstered by the completion of a significant $20 million Road Zipper System project. According to InvestingPro data, the company maintains strong financial health with a GOOD overall score, supported by solid profitability metrics including a 31.2% gross margin. Additionally, the company has been experiencing positive outcomes from a substantial irrigation project in the Middle East and North Africa (MENA) region.

Despite a weaker performance in North American irrigation sales, Lindsay Corporation holds a relatively stable outlook for the rest of the year. The company’s strong financial position is evident in its balance sheet, with InvestingPro analysis showing more cash than debt and a comfortable current ratio of 3.87. The company’s management remains optimistic about their ability to navigate through the challenges presented by the current dynamic tariff environment. They plan to implement strategic price increases and fully utilize their global footprint and supply chain to maintain their competitive edge, supported by their 22-year track record of consecutive dividend increases.

The company’s recent success can be attributed in part to the strategic completion of the Road Zipper System project, which contributed significantly to their earnings beat this quarter. This system is designed to reduce congestion and improve traffic flow on roads, and the completion of such a large-scale project reflects Lindsay Corporation’s strong execution capabilities.

Lindsay Corporation also continues to reap the benefits from its large irrigation project in the MENA region, which has been a key driver of revenue. This project aligns with the global need for efficient water management solutions, particularly in regions where water scarcity is a pressing issue.

Going forward, Lindsay Corporation is poised to adapt to the evolving tariff landscape, which could impact costs and margins. The company’s proactive measures to increase prices and optimize its supply chain are intended to mitigate potential adverse effects from tariff changes and secure its market position amidst these external pressures.

In conclusion, Stifel’s updated price target for Lindsay Corporation reflects the company’s solid quarter performance, strategic project completions, and proactive approach to market challenges. With analyst targets ranging from $130 to $150, and a consensus Hold rating, investors might benefit from the comprehensive analysis available through InvestingPro, which offers detailed insights into Lindsay’s financial health, valuation metrics, and growth potential through its exclusive Pro Research Report, along with 8 additional ProTips not covered in this article.

In other recent news, Lindsay Corporation reported record-breaking net earnings and earnings per share (EPS) for Q2 2025, with EPS reaching $2.44, significantly surpassing the forecast of $1.79. The company’s revenue also exceeded expectations, totaling $187.1 million against a projected $174.5 million. This growth was driven by strong performances in both the irrigation and infrastructure segments, with infrastructure revenues more than doubling. Stifel analysts responded to Lindsay Corporation’s robust earnings by raising the stock target from $130.00 to $134.00, maintaining a Hold rating on the shares. The company’s success was bolstered by a significant $20 million Road Zipper System project and an ongoing major irrigation project in the Middle East and North Africa (MENA) region. Despite softer conditions in the North American irrigation market, Lindsay Corporation remains optimistic about its global operations and strategic pricing adjustments. The company continues to focus on managing tariff impacts through its global supply chain and anticipates stable demand for irrigation equipment in the latter half of fiscal 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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