On Tuesday, B.Riley adjusted the price target for AZZ Inc . (NYSE: NYSE:AZZ) shares, increasing it to $89.00 from the previous $85.00, while keeping a Buy rating on the company's stock. The revision reflects recent financial activities by AZZ Inc., specifically addressing the redemption of the company's series A convertible preferred stock.
The financial firm's update follows AZZ Inc.'s closure of a public offering on April 30, 2024, where it issued 4.6 million shares of common stock, raising gross proceeds of $322 million. This capital raise was directed towards the redemption of preferred stock, which included a redemption premium of $75 million.
Consequently, the GAAP basic earnings per share (EPS) estimate for AZZ Inc. was adjusted from $0.95 to a loss of $1.62. Meanwhile, the non-GAAP adjusted diluted EPS estimate saw a slight increase from $1.26 to $1.28.
For the first quarter of the fiscal year, the analyst provided an adjusted EBITDA estimate for AZZ Inc. at approximately $82.3 million. The firm anticipates further insights from the company's upcoming earnings conference call, scheduled for July 11 at 11 a.m. ET.
During this call, AZZ Inc.'s management is expected to discuss various topics, including end market demand, capital allocation strategies, the progress of construction activities in Missouri, and full-year guidance.
The price target increase to $89 is attributed to a higher valuation multiple applied by the analyst, indicating a positive outlook for the stock's performance. AZZ Inc. shareholders and potential investors are likely to monitor the upcoming earnings call for indications of the company's financial health and strategic direction.
In other recent news, AZZ Inc. has been the focus of several significant developments. The company has set its quarterly dividend at $0.17 per share, a decision reflecting AZZ Inc.'s ongoing efforts to deliver shareholder value. In addition, the company has announced the appointment of Jason Crawford as its new Chief Financial Officer, leveraging his extensive finance experience.
AZZ Inc. has also launched a public offering of 4 million shares, intending to use the proceeds for the redemption of its 6.0% Series A Convertible Preferred Stock. The company's financial restructuring and acquisition of a pre-coating business have been cited by Evercore ISI, which recently initiated coverage on AZZ shares and set a price target of $90.
In terms of financial performance, the company reported record-breaking sales for fiscal 2024, reaching $1.54 billion, and a significant rise in net income from continuing operations to $101.6 million. Analyst firms Jefferies and B.Riley have also shared their perspectives on AZZ.
Jefferies initiated coverage with a Buy rating, emphasizing growth from reshoring and infrastructure, while B.Riley raised its stock price target for AZZ following strong earnings, maintaining its Buy rating. These recent developments underscore AZZ's strategic and financial momentum in the market.
InvestingPro Insights
In light of B.Riley's recent price target adjustment for AZZ Inc., it is worth considering additional insights from InvestingPro. AZZ Inc. is currently trading at a P/E ratio of 21.82, which is appealing when paired with its near-term earnings growth, suggesting that the stock may be undervalued relative to its future earnings potential. Furthermore, with a consistent track record of dividend payments for the last 15 years, AZZ demonstrates a commitment to returning value to shareholders.
InvestingPro Data also reveals that AZZ has experienced a substantial 77.77% return over the past year, with a significant price uptick of 33.54% in the last six months alone. This performance is indicative of strong market confidence and momentum. Additionally, the company's liquid assets surpass its short-term obligations, providing financial stability and flexibility. With analysts predicting profitability for the current year and a solid revenue growth of 16.16% in the last twelve months as of Q4 2024, AZZ Inc. appears to be on a robust financial footing.
Investors looking for a deeper dive into AZZ Inc.'s financials and performance metrics can explore additional InvestingPro Tips, with a total of 7 tips available at InvestingPro. For those interested in subscribing, be sure to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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