Northland has reaffirmed its Market Perform rating on Allient (ALNT, Financial), setting a price target of $35. This decision follows Allient's impressive first-quarter results, which surpassed expectations. The company's forward guidance also suggests a more favorable outlook for fiscal year 2025.
Though Northland acknowledges its misjudgment in previously downgrading Allient prior to the report, the firm remains committed to its current rating. The analyst expressed the desire to upgrade the rating but noted that the recent stock price appreciation post-earnings has aligned closely with their fair value assessment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Allient Inc (ALNT, Financial) is $34.00 with a high estimate of $35.00 and a low estimate of $32.00. The average target implies an upside of 18.22% from the current price of $28.76. More detailed estimate data can be found on the Allient Inc (ALNT) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Allient Inc's (ALNT, Financial) average brokerage recommendation is currently 2.3, 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 Allient Inc (ALNT, Financial) in one year is $27.64, suggesting a downside of 3.89% from the current price of $28.76. 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 Allient Inc (ALNT) Summary page.
ALNT Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Allient Inc (ALNT, Financial) reported a 9% sequential increase in revenue and a 70 basis point expansion in gross margin to 32.2%.
- Operating margin rose 130 basis points sequentially to 6.6%, and adjusted EPS increased nearly 50% from the previous quarter.
- The 'Simplified to Accelerate Now' program is driving efficiency and improving responsiveness, positioning the company for long-term growth.
- Aerospace and defense sectors saw a 25% increase in revenue, reflecting strong performance in key defense and space programs.
- The company has implemented a multi-pronged mitigation strategy to address geopolitical risks, including tariffs and rare earth magnet sourcing.
Negative Points
- Year-over-year revenue decreased by 9% due to demand softness in the vehicle and industrial markets, compounded by an unfavorable FX impact.
- Vehicle revenue declined 34%, reflecting continued softness in power sports demand and a shift from lower-margin programs.
- Operating income was down year-over-year due to lower volume and restructuring charges of $1.5 million.
- Interest expense increased by approximately $247,000 due to higher interest rates and the expiration of favorable interest rate swaps.
- The company faces challenges with high rare earth magnet content due to China's export restrictions, requiring focused mitigation efforts.
