On Wednesday, Citi increased the price target for Mirion Technologies (NYSE: MIR) to $20.00, up from the previous $18.00, while retaining a Buy rating on the stock. The company's stock, currently trading at $16.94, has demonstrated remarkable momentum with an 85.95% return over the past year according to InvestingPro data.
The revision follows Mirion Technologies' Investor Day, where the company outlined several growth and margin expansion drivers that are expected to support its financial guidance for the year 2025 and targets for 2024 through 2028.
During the event, Mirion Technologies presented its growth potential for the near term, heading into the year 2025. The company is witnessing favorable secular trends and maintains a strong market position in both its Nuclear & Safety and Medical (TASE:PMCN) segments. The Nuclear & Safety segment, previously known as Technologies, is projected to see an organic growth compound annual growth rate (CAGR) of approximately 6% to 8%, while the Medical segment is expected to experience an organic growth CAGR of about 7% to 9%.
The company's focus on commercial and operational excellence was highlighted as a key factor that could support accelerated growth and margin expansion in the coming years. Mirion Technologies also emphasized its commitment to capital deployment, with around $900 million of potential capacity earmarked for the next four years.
This strategy includes a concentration on incremental mergers and acquisitions as the company's leverage normalizes, which could contribute to further earnings growth beyond the financial targets set for 2024 to 2028.
Citi's comments reflect optimism about Mirion Technologies' strategic initiatives and their potential to drive sustainable growth and value creation for shareholders. The upgraded price target is indicative of the confidence in the company's ability to meet its outlined financial goals and capitalize on the opportunities presented by its market segments.
With revenue growth of 6.15% and analysts expecting profitability this year, investors seeking deeper insights can access comprehensive valuation metrics and 12 additional ProTips through InvestingPro's detailed research reports.
In other recent news, Mirion Technologies has exhibited significant growth in its third-quarter earnings, reporting a revenue increase of 8% to $207 million and an adjusted EPS of $0.08. The company's organic growth forecast for 2024 has been raised, indicating robust demand in nuclear-related end-markets and potential new order opportunities worth between $300 million and $400 million by the end of 2025.
Citi has updated its stance on Mirion's stock, raising the price target from $17.00 to $18.00 and maintaining a Buy rating. Goldman Sachs also adjusted its outlook, increasing the price target to $16.00, reflecting a positive view on the growing momentum in nuclear new builds.
Mirion Technologies has secured two significant contracts for the Sizewell C project, contributing to a shift of $30 million in orders from Q2 to Q3. However, the company experienced a setback due to the de-booking of half of a Turkish new build award valued at $21 million over contractual disputes.
The company reaffirmed its full-year 2024 adjusted EBITDA guidance of $195 million to $205 million and its EPS forecast of $0.37 to $0.42. The company's backlog currently stands at $815 million, up 2% from last year, indicating a robust pipeline, particularly in the nuclear sector.
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