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Myers Industries shares target raised to $30 by KeyBanc, cites optimistic outlook

EditorNatashya Angelica
Published 22/03/2024, 15:30
© Reuters.

On Friday, KeyBanc made a significant adjustment to Myers Industries' (NYSE:MYE) stock price target, raising it to $30.00 from the previous $22.00. The firm has maintained an Overweight rating on the shares, signaling confidence in the company's growth potential.

This move comes following KeyBanc's attendance at Myers Industries' Investor Day in New York City, where the company outlined its ongoing business strategies and growth plans.

The company's recent acquisition of Signature Systems, a manufacturer of composite matting, was highlighted as a key development. This addition is expected to contribute positively to Myers Industries' margins and help stabilize the company's portfolio by making it less susceptible to economic cycles.

Still, it was noted that Myers Industries is still experiencing near-term headwinds in its recreational vehicle, marine, and garden product segments.

Myers Industries is shifting its strategy to focus on expanding its premium-branded products, which are believed to have attractive financial profiles. This strategic pivot is anticipated to compensate for the ongoing pressures in the consumer-facing segments of the business.

Meanwhile, the company's Auto Aftermarket Distribution business is dealing with margin challenges due to the integration of Mohawk, acquired in 2022. Despite these pressures, recent integration efforts and management changes have given analysts confidence in a sustainable margin improvement in the near to medium term.

KeyBanc's analyst expressed a belief that Myers Industries is at the beginning stages of a positive inflection point after years of navigating tough market conditions and merging acquired businesses.

The firm's updated valuation reflects higher estimates and presents an attractive entry point for investors considering the new direction of Myers Industries. The raised price target is a reflection of the firm's optimistic outlook on the company's financial future.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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