Allient's Industrial Market Is Improving, Analyst Upgrades Stock Citing Expected Bottom-Line Growth

Core Viewpoint - Northland Capital Markets analyst upgraded Allient Inc. from Market Perform to Outperform, raising the price forecast from $30 to$35, citing improvements in the industrial market and expectations of reduced negative impacts from a weaker vehicle market as FY25 progresses [1] Company Performance - The analyst projects a 14.9% year-over-year sales decline in Q4 to $120 million, closely aligning with the consensus estimate of$119.7 million, attributing challenges to a weaker macro environment and reduced demand from major customers [2] - For FY25, sales are estimated to decline slightly from $527.9 million in FY24 to$518.2 million, while adjusted EBITDA is projected to grow by 16.6% to $68.9 million [3] - There are concerns regarding the FY25 consensus sales estimate being slightly too high, particularly for the second half, with a consensus of$268.0 million compared to the analyst's estimate of $262.4 million [3] Market Reaction - Following the analyst's upgrade, ALNT shares increased by 7$26.30 [3]