Raymond James Downgrades Applied Industrial Technologies (AIT) to Market Perform

Raymond James analyst Sam Darkatsh downgraded Applied Industrial Technologies (NYSE: AIT) from Outperform to Market Perform.

The analyst comments "We downgrade to Market Perform due to valuation, as shares are now comfortably above our prior $250 target despite since-lowered estimates. We continue to admire AIT’s service oriented business model and clear #1 positioning in the attractive fluid power/flow control product categories and market verticals. It’s also encouraging to see some recent organic green shoots in Engineered Solutions. That said, at 18x forward EBITDA, the market is now implicitly assuming ~4-5% organic sales growth in virtual perpetuity at normal incremental margins and capital needs (i.e. similar to management’s own internal target, both long term and FY26)."

For an analyst ratings summary and ratings history on Applied Industrial Technologies click here. For more ratings news on Applied Industrial Technologies click here.

Shares of Applied Industrial Technologies closed at $273.04 yesterday.

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