Albany International Faces Persistent Challenges: Analyst Reiterates Sell Rating and Lowers Price Target

In a report released today, Ronald Epstein from Bank of America Securities reiterated a Sell rating on Albany International (AIN – Research Report), with a price target of $65.00.

Ronald Epstein has given his Sell rating due to a combination of factors affecting Albany International’s financial outlook. The company faces ongoing challenges with demand and execution, particularly in its Albany Engineered Composites (AEC) division. The persistence of program charges, notably in the CH-53K and Gulfstream programs, has hindered profitability, and despite management’s optimism, these issues are expected to continue until labor and supply chain problems are resolved.
Additionally, Albany International’s Machine Clothing (MC) segment is struggling with limited market demand, especially in American and Asian markets, leading to a decline in revenues and operating margins. The integration of Heimbach has not resulted in significant growth, and the company’s sales to Safran have decreased, indicating potential delays in benefiting from OEM rate increases. These factors contribute to a cautious outlook, prompting Epstein to reiterate a Sell rating and lower the price objective to $65.

According to TipRanks, Epstein is a 5-star analyst with an average return of 14.8% and a 64.30% success rate. Epstein covers the Industrials sector, focusing on stocks such as Boeing, Rocket Lab USA, and General Dynamics.