Update shared on 10 Nov 2025
Fair value Increased 9.77%Analysts have raised their price target for Mayville Engineering Company from $21.50 to $23.60 per share. They cite expectations for stronger revenue growth, improved profit margins, and increasing benefits from the company’s exposure to the data center market.
Analyst Commentary
Recent research from Wall Street signals a cautiously optimistic outlook for Mayville Engineering Company, driven by its strategic exposure to the expanding data center market and expectations for future growth following recent acquisitions. However, some caution remains around recent financial performance and near-term earnings guidance.
Bullish Takeaways- Bullish analysts view Mayville Engineering as a hidden beneficiary of the data center buildout cycle, citing its acquisition-driven exposure to high-growth end markets.
- Expectations are for data center-driven revenues to become a primary growth driver over the next several years. This could potentially allow the company to be valued closer to peers with more mature data center businesses.
- Anticipated improvements in profit margins from exposure to higher-margin data center projects could support an upward re-rating of shares and more favorable analyst revisions.
- Some see the current share price as lagging the company's intrinsic value, considering the possibility of significant upside if execution aligns with new growth opportunities.
- Bearish analysts highlight recent below-consensus quarterly results and reduced forward guidance as short-term concerns.
- There is caution regarding the immediate outlook, with the expectation that share price appreciation may be delayed until evidence of re-accelerated growth materializes.
- Potential risks include reliance on successful execution in the data center space and integrating recent acquisitions in order to fully capture projected growth and margin expansion.
- Valuation remains sensitive to quarterly results. Any further earnings disappointments could limit near-term upside.
What's in the News
- Mayville Engineering Company reiterated its earnings guidance for the full year 2025. The company expects net sales between $528 million and $562 million (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen from $21.50 to $23.60, reflecting increased optimism around the company’s prospects.
- Discount Rate increased from 8.80% to 10.30%. This suggests analysts view the shares as slightly more risky or requiring a higher return.
- Revenue Growth expectations have been raised from 7.9% to 9.9% as analysts project stronger top-line expansion.
- Net Profit Margin is now forecast at 3.00%, up from 2.14%. This indicates anticipated improvement in profitability.
- Future P/E ratio has fallen from 37.25x to 28.33x, pointing to a more attractive valuation relative to expected earnings growth.
Disclaimer
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