On Monday, Oppenheimer has increased the price target for SPX Corporation (NYSE:SPXC) shares to $134 from the previous $124, maintaining an Outperform rating. The firm's analysts have recognized SPX's significant progress since 2016, highlighting the pervasive presence of the company's HVAC and D&M products in the market.
The leadership team at SPX Corporation, led by CEO Gene Lowe, recently outlined the company's impressive profit trajectory and provided a strategy to double its run-rate EBITDA over a medium-term period. The analysts at Oppenheimer have expressed confidence in SPX's ability to achieve organic growth in its end markets, which is expected to be fueled by gains in market share across its various platforms.
Additionally, SPX is anticipated to experience consistent margin growth stemming from a structurally improved base. The company's merger and acquisition strategy is also seen as a key driver for future growth, supported by a strong pipeline and a capacity of over $1.5 billion over the next three to four years.
The target for SPX's EBITDA compound annual growth rate (CAGR) is set at an ambitious 15% or more. This goal is considered realistic by the analysts, and they suggest that the base figure may even be conservative. With these factors in mind, Oppenheimer anticipates that SPX's unique growth story will attract increased attention from investors.
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