On Thursday, Stifel has increased the price target for Ascent Industries Co. (NASDAQ: ACNT) to $18 from the previous $17, while retaining a Buy rating on the stock. The adjustment follows a review of the company's first quarter 2024 results and a revised forward outlook provided by the firm.
The company, under its new management, has demonstrated tangible progress by securing approximately $10 million in annualized new business within its Chemicals division. Furthermore, there has been a strategic realignment of its portfolio and salesforce in the Tubing sector. This strategic redirection, coupled with a consistent emphasis on cost reduction and efficiency enhancement, has bolstered management's confidence. They anticipate that the second half of 2024 will witness a rebound in margins towards the company's target rate.
The firm's optimism is underpinned by expectations of a near-term turnaround to positive EBITDA and a return to double-digit margins by 2025. The revised price target to $18 reflects a slight increase in the firm's 2025 earnings estimates for Ascent Industries.
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