Jefferies starts AZZ Inc. stock with Buy, highlights growth from reshoring and infrastructure By Investing.com

On Monday, Jefferies initiated coverage on NYSE:AZZ (NYSE:), AZ Company . stock, with a Buy rating and a price target of $105.00. The company highlighted the position of AZZ Inc. As the leading independent supplier of metallic coatings in North America, it believes it is well positioned to capitalize on current industry trends.

The company is expected to benefit from strong secular trends, including remanufacturing and infrastructure modernization, as well as a cyclical recovery in metals demand. Jefferies expects these factors to contribute to the company's growth, which is expected to outpace overall economic growth.

The financial performance of AZZ Inc. is characterized by… With strong margins of over 20% and average free cash flow (FCF) of over $5 per share before dividends. Jefferies notes that these strong financial metrics are likely to lead to a significant expansion in the company's market multiples.

The analyst's comment confirms the potential for AZZ Inc. shares to double in value. By 2026. This optimistic outlook is based on the company's strategic location and favorable market conditions that are expected to support its growth trajectory.

The newly set price target of $105.00 represents Jefferies' confidence in the company's ability to achieve and sustain strong financial performance in the coming years. A Buy rating is an indicator of a company's positive view of the stock's future prospects.

InvestingPro Insights

InvestingPro data highlights AZZ Inc.'s strong position. It is on the market with a market capitalization of $2.28 billion and a price-to-earnings ratio of 21.87, reflecting investors' confidence in the company's earnings potential. It is worth noting that the company achieved a significant 6-month total return of 56.81%, indicating a strong performance in the market recently. In addition, AZZ Inc. demonstrated Steady revenue growth, with an increase of 16.16% over the past 12 months as of Q4 2024, confirming the expansion of the company's operations.

As advised by InvestingPro, analysts recently revised their earnings forecasts upward for AZZ Inc., indicating optimism about the company's future financial results. It should also be noted that AZZ Inc. It trades at a low P/E ratio compared to its near-term earnings growth, suggesting the stock may be undervalued at its current price. With these considerations in mind, investors can explore additional insights and tips about AZZ Inc. By visiting InvestingPro. For those looking to deepen their analysis, use the coupon code ProNews24 Get an extra 10% off your annual or biennial Pro and Pro+ subscription, and discover 7 additional tips from InvestingPro that can guide your investment decisions.

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