Wells Fargo initiates AZZ stock coverage with Overweight rating

Published 14/08/2025, 11:30
Wells Fargo initiates AZZ stock coverage with Overweight rating

Investing.com - Wells Fargo initiated coverage on AZZ Inc. (NYSE:AZZ) Thursday with an Overweight rating and a price target of $128.00. The stock, currently trading at $116.55 and commanding a market capitalization of $3.5 billion, has demonstrated remarkable strength with a 52% return over the past year.

The investment bank’s price target suggests significant upside potential for the metal coatings and infrastructure solutions provider.

Wells Fargo based its valuation on 12x 2026E/27E EV/EBITDA, indicating confidence in the company’s medium-term earnings potential.

The firm highlighted AZZ’s persistent earnings growth and resilience through the COVID pandemic despite weakness in key construction end markets.

Wells Fargo specifically noted that AZZ’s tolling model eliminates metal price risk and has demonstrated stability through recent commodity price volatility and softer construction activity.

In other recent news, AZZ Inc . announced its dual listing on NYSE Texas, a new electronic equities exchange based in Dallas. The company will maintain its primary listing on the New York Stock Exchange while adding this new listing. In addition to this development, AZZ reported its fiscal year 2026 first-quarter results, revealing an earnings per share (EPS) of $1.78, which exceeded the forecasted $1.56, marking a 14.1% surprise. However, the company’s revenue for the quarter was $422 million, falling short of the expected $433.45 million, a 2.64% miss. Following these results, Noble Capital raised its price target for AZZ to $125, up from $112, while maintaining an Outperform rating. The adjustment in the price target was attributed to the strong increase in adjusted net income, which rose by 22.8% compared to the previous year. These recent developments highlight significant activities and financial performance for AZZ Inc.

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