Overview of AZZ Inc.#
Evercore ISI has raised its price target for AZZ Inc. (NYSE:AZZ) from $137 to $152, while maintaining an Outperform rating on the stock. Currently, AZZ shares are trading at $143.33, close to their 52-week high of $147.32. Over the past year, the stock has seen an impressive return of 69%.
Financial Performance and Outlook#
The firm highlighted strong execution in the fourth quarter of fiscal 2026 and a positive outlook for fiscal 2027. They noted that galvanizing demand is contributing to unexpected growth. The WashMO facility has reached profitability, although its utilization ramped up to 75% more slowly than anticipated.
First-quarter comparisons may face challenges due to the loss of $7.7 million in AVAIL revenue and last year’s weather-related adjustments. As a result, the second fiscal quarter is expected to be the peak period for performance.
Earnings and Valuation#
Evercore ISI has increased its full-year EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) estimate to $393 million, up from a previous range, while the company’s guidance stands at $360 million to $400 million. This increase is attributed to better-than-expected performance in Metal Coatings margins. With a market capitalization of $4.28 billion and a price-to-earnings (P/E) ratio of 13.65, AZZ is considered slightly undervalued compared to its Fair Value.
Recent Developments#
AZZ Inc. recently reported strong financial results for the fourth quarter of fiscal year 2026, exceeding earnings expectations. The company achieved an adjusted earnings per share (EPS) of $1.34, surpassing the forecast of $1.22. Revenue also exceeded estimates, reaching $385.1 million against a prediction of $382.99 million. These results reflect AZZ Inc.'s solid financial health and have positively influenced investor sentiment. Analysts continue to monitor the company closely, although no specific upgrades or downgrades have been reported recently.