Piper Jaffray Remains Bullish on Alamo Group (ALG) Following Soft 2Q

August 8, 2016 8:32 AM EDT
Get Alerts ALG Hot Sheet
Price: $76.51 -0.04%

Rating Summary:
    2 Buy, 1 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Piper Jaffray reiterated an Overweight rating on Alamo Group (NYSE: ALG), and raised the price target to $70.00 (from $68.00), following the company's 2Q earnings report. Revenue of $212M fell below Street expectations, and EPS of $0.92 was below the Street at $1.00.

Analyst Brett Wong commented, "Although headwinds have picked up for ALG as we have moved through the year, we continue to favor the stock on a relative basis to other ag machinery names due to its resilience in ag equipment demand and stable government demand for industrial equipment. We are lowering our estimates, where we are now modeling just modest earnings growth this year as continued headwinds are expected to impact profitability. We still expect a reacceleration in earnings growth in FY17 despite lowering our estimate as Industrial growth remains healthy and ag improves modestly given the more resilient demand compared to heavier-HP machinery. Our price target moves to $70 on valuation and we remain Overweight the stock."

For an analyst ratings summary and ratings history on Alamo Group click here. For more ratings news on Alamo Group click here.

Shares of Alamo Group closed at $63.26 yesterday.

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