In a report released yesterday, Gary Prestopino from Barrington maintained a Buy rating on Commercial Vehicle Group, with a price target of $4.00.
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Gary Prestopino has given his Buy rating due to a combination of factors that highlight the resilience and strategic improvements of Commercial Vehicle Group. The company reported better-than-expected adjusted EBITDA in Q2/25, with sales aligning with projections and surpassing consensus expectations. This performance is notable given the challenging market conditions, showcasing CVGI’s ability to enhance operational efficiency, particularly in freight, labor, and plant overhead costs.
Additionally, the company’s restructuring efforts are beginning to bear fruit, as evidenced by improved free cash flow and stabilization in key segments like Global Electrical Systems. The completion of a debt refinancing, extending maturities through 2030, further strengthens CVGI’s financial position. Despite a decline in overall revenue compared to the previous year, the company’s strategic initiatives, such as new low-cost manufacturing facilities, are contributing to improved margins and operational income, supporting the Buy recommendation.
According to TipRanks, Prestopino is a 5-star analyst with an average return of 13.3% and a 52.95% success rate. Prestopino covers the Consumer Cyclical sector, focusing on stocks such as OPENLANE, Liquidity Services, and ACV Auctions.
In another report released on August 5, Noble Financial also maintained a Buy rating on the stock with a $4.00 price target.