In a report released today, Reuben Garner from Benchmark Co. reiterated a Buy rating on Janus International Group (JBI – Research Report), with a price target of $10.00.
Reuben Garner has given his Buy rating due to a combination of factors that highlight Janus International Group’s promising outlook. The company reported a robust start to the fiscal year 2025, which has led to a significant increase in stock value. This positive performance is attributed to the stabilization and improvement in backlog and outlooks, particularly in the larger institutional and commercial sectors. These developments suggest a bottoming in estimates, which is crucial for establishing a solid valuation foundation for the stock.
Despite some challenges, such as potential pressures on new construction and smaller customers, the overall investment thesis remains strong. Janus International Group’s role in the self-storage sector is seen as less cyclical, and the company boasts an impressive margin profile with gross margins over 40% and EBITDA margins over 20%. These factors, combined with secular growth in the self-storage industry, indicate that the company is undervalued in the market, supporting the Buy rating.
According to TipRanks, Garner is a 5-star analyst with an average return of 11.8% and a 55.06% success rate. Garner covers the Industrials sector, focusing on stocks such as Bluelinx Holdings, Builders Firstsource, and Quanex.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $10.00 price target.