EVI Industries: Strategic Acquisitions and Expansion Drive Buy Rating

Michael Shlisky, an analyst from D.A. Davidson, has initiated a new Buy rating on EVI Industries (EVI).

Michael Shlisky has given his Buy rating due to a combination of factors that highlight EVI Industries’ strategic positioning and growth potential. EVI is rapidly establishing a strong presence in the industrial laundry machinery sector by consolidating a fragmented market through strategic acquisitions. This approach is expected to result in a company with a robust EBITDA margin and a strong return on invested capital, making it an attractive investment opportunity.
Furthermore, EVI’s extensive network of distribution points across the United States positions it as a reliable partner for large-scale commercial and industrial laundry operations. The company’s focus on high-ROI replacement products and services ensures a steady stream of recurring revenue, which is projected to constitute a significant portion of its business. Additionally, EVI’s recent acquisition of GNA and its plans to expand into e-commerce and the chemicals space are expected to enhance its earnings potential. These strategic initiatives, combined with a favorable valuation compared to its peers, underpin Shlisky’s positive outlook on EVI’s stock.