Update shared on 28 Nov 2025
Analysts have lowered Lindsay's price target by $14 to $122, citing ongoing challenges in domestic irrigation markets, a recent earnings miss, and tough year-over-year comparisons for the company's international and infrastructure segments.
Analyst Commentary
Following the recent performance report, analysts have provided both optimistic and cautious perspectives regarding Lindsay's outlook and valuation. Their commentary highlights several factors influencing their current sentiment on the company.
Bullish Takeaways
- Bullish analysts note that the company achieved a top-line revenue beat, reflecting resilience in demand for its core products.
- Growth opportunities remain present in international irrigation, particularly in regions with expanding agricultural infrastructure.
- Ongoing projects in the Infrastructure segment, despite challenging comparisons ahead, may provide a basis for long-term growth beyond the upcoming fiscal year.
Bearish Takeaways
- Bearish analysts are concerned about persistent weakness in domestic irrigation markets, which could weigh on near-term profitability.
- The recent earnings miss on EPS highlights execution challenges and margin pressure, potentially limiting valuation upside.
- Comparisons for international and infrastructure operations are expected to be difficult in FY26 because of unusually strong results from large-scale projects in FY25.
- Execution risk is elevated, especially if the market does not recover as anticipated or if new project pipelines slow.
What's in the News
- Lindsay Corporation (NYSE:LNN) has announced a new share repurchase program to buy back up to $150 million of common stock with no expiration date. (Company announcement)
- Between September 1, 2025 and November 3, 2025, the company repurchased 224,420 shares for $29.81 million. This brings total repurchases since January 2014 to 2,888,941 shares, representing 24.7% of shares outstanding for $250 million. (Buyback update)
- The Board of Directors authorized a new buyback plan on November 3, 2025. (Company board disclosure)
- Sam Hinrichsen has been appointed as the next Chief Financial Officer, effective January 1, 2026. He will succeed Brian Ketcham upon his retirement at the end of 2025. (Executive announcement)
Valuation Changes
- Fair Value Estimate: Remains unchanged at $127 per share, reflecting analyst consensus on intrinsic value.
- Discount Rate: Has risen slightly from 8.56% to 8.59%, which indicates a minor perceived increase in investment risk or cost of capital.
- Revenue Growth: Essentially unchanged, holding steady at approximately 4.29% projected annual growth.
- Net Profit Margin: Remains stable at 11.69%, suggesting expectations for profitability have not shifted.
- Future P/E Ratio: Edged up marginally from 18.12x to 18.13x, which points to a barely higher valuation level applied to future earnings.
Disclaimer
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