KeyBanc has increased its price target for Atkore (ATKR, Financial) from $70 to $80, maintaining its Overweight rating on the stock. The firm, encouraged by Atkore's recent second-quarter earnings, believes that tariff policies continue to benefit the company. These tariffs have effectively eased import-related pricing pressures on Metal and PVC conduit, allowing for better pricing conditions. Although the current economic outlook does not yet fully capture improvements in import dynamics, KeyBanc anticipates potential further gains if the existing tariff structure remains unchanged. This scenario presents a promising risk/reward opportunity for Atkore moving forward.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Atkore Inc (ATKR, Financial) is $75.50 with a high estimate of $90.00 and a low estimate of $65.00. The average target implies an upside of 15.78% from the current price of $65.21. More detailed estimate data can be found on the Atkore Inc (ATKR) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Atkore Inc's (ATKR, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Atkore Inc (ATKR, Financial) in one year is $117.01, suggesting a upside of 79.44% from the current price of $65.21. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Atkore Inc (ATKR) Summary page.
ATKR Key Business Developments
Release Date: May 06, 2025
- Net Sales: $702 million, with 5% organic volume growth.
- Adjusted EBITDA: $116 million.
- Adjusted EPS: $2.04.
- Adjusted EBITDA Margin: 16.6%, up from 15% in the previous quarter.
- Share Repurchases: Approximately $50 million in the second quarter.
- Dividend Increase: Increased to $0.33 per share.
- Impairment Charge: $128 million noncash impairment related to HDPE assets.
- Full Year Adjusted EBITDA Guidance: Midpoint of $400 million.
- Q3 Net Sales Guidance: $715 million to $745 million.
- Q3 Adjusted EBITDA Guidance: $85 million to $105 million.
- Q3 Adjusted EPS Guidance: $1.25 to $1.75.
- Full Year Adjusted EPS Guidance: $5.75 to $6.85.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Atkore Inc (ATKR, Financial) achieved net sales of $702 million in the second quarter, with a 5% organic volume growth driven by strong contributions from construction services, steel conduit, metal framing, and cable management products.
- The company reported an adjusted EBITDA of $116 million and an adjusted EPS of $2.04, indicating strong financial performance.
- Atkore Inc (ATKR) successfully ratified a new five-year labor agreement with the United Steelworkers at their Harvey, Illinois facility, which is expected to enhance productivity and customer service.
- The company repurchased approximately $50 million in shares and increased its quarterly dividend to $0.33 per share, demonstrating a commitment to returning cash to shareholders.
- Atkore Inc (ATKR) maintained its full-year fiscal 2025 adjusted EBITDA guidance with a midpoint of $400 million, reflecting confidence in its business strategy and market position.
Negative Points
- The company experienced a 17% year-over-year decline in average selling prices, particularly affecting PVC conduit and steel conduit products.
- Atkore Inc (ATKR) announced a $128 million non-cash impairment charge related to its HDPE pipe and conduit products due to competing technologies and delays in government stimulus funding.
- The unpredictability of tariffs and their impact on the broader construction market remains a concern, with potential implications for future demand and pricing.
- The Dodge Momentum Index suggested a slowdown in planning activity across several nonresidential categories, indicating potential challenges in future construction demand.
- The company anticipates a moderation in growth for its Construction Services business in the second half of the year due to a reduced backlog of projects.
