Update shared on16 Aug 2025
Fair value Increased 5.13%Analysts have raised their price target for AZZ to $125.89, citing consistent execution, a stronger balance sheet, improved margins, and favorable market and policy dynamics that support sustained growth and free cash flow.
Analyst Commentary
- Bullish analysts see AZZ as a quality franchise focused on profitable growth.
- Recent analyst model updates reflect consistent execution and a strengthened balance sheet, increasing capital allocation flexibility.
- Improved sales and margins, market share growth, and reduced debt position AZZ to sustain free cash flow.
- Recent quarterly results prompted increased estimates and higher price targets, signaling confidence in ongoing performance.
- Near-term optimism is supported by U.S. steel price support and expected tariff benefits, with favorable medium-term demand and supply dynamics for U.S.-focused steel companies.
What's in the News
- The Board of Directors authorized a fiscal first quarter 2026 cash dividend of $0.20 per share, a 17.6% increase from the previous $0.17 per share.
- AZZ Inc. was dropped from multiple Russell value and small cap indices, including the Russell 2000, 2500, 3000, and related value and defensive indices.
- The company was added to the Russell 2000 Dynamic Index.
- From March 1 to May 31, 2025, no shares were repurchased under the existing buyback program; cumulatively, 932,651 shares (3.71%) have been repurchased for $46.81 million since the buyback's inception.
- AZZ Inc. scheduled an Analyst/Investor Day event.
Valuation Changes
Summary of Valuation Changes for AZZ
- The Consensus Analyst Price Target has risen from $119.75 to $125.89.
- The Consensus Revenue Growth forecasts for AZZ has fallen from 5.5% per annum to 5.0% per annum.
- The Future P/E for AZZ has risen slightly from 23.78x to 24.66x.
Disclaimer
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