Analyst Ronald Epstein of Bank of America Securities reiterated a Sell rating on Albany International, with a price target of $55.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Ronald Epstein has given his Sell rating due to a combination of factors affecting Albany International’s performance. The company is facing significant operational challenges, particularly in its structures assembly business, which is struggling with labor and material cost issues. This is highlighted by a substantial $147 million loss reserve related to the CH-53K program, indicating long-term profitability concerns.
Additionally, Albany International’s Machine Clothing segment is experiencing declining margins due to reduced volumes and weak demand, particularly in Asian markets. Despite some efficiency gains, these improvements are insufficient to offset the negative impacts. The company’s strategic options, including potential contract modifications or the sale of its structures assembly business, underscore the ongoing uncertainties and execution hurdles that limit its progress.