Analyst Joe Ritchie from Goldman Sachs maintained a Buy rating on Forgent Power Solutions, Inc. Class A and increased the price target to $49.00 from $48.00.
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Joe Ritchie has given his Buy rating due to a combination of factors tied to Forgent Power Solutions’ accelerating growth and strong order momentum. The company outperformed expectations on adjusted EBITDA, driven by organic sales growth well above prior forecasts, while a book-to-bill ratio above 2x and a $1.5bn backlog provide solid revenue visibility into the coming quarters.
Ritchie also highlights FPS’s initial FY26 guidance, which aligns with or slightly exceeds consensus, and the prospect of improving margins as labor efficiency gains materialize after a sharp increase in manufacturing headcount. Looking further out, he expects the backlog to exceed $2bn by the end of FY26, leading him to raise FY27–FY28 EBITDA estimates and lift his 12‑month price target to $49, supporting a continued Buy stance despite identified execution and industry risks.
According to TipRanks, Ritchie is a 5-star analyst with an average return of 14.3% and a 60.93% success rate. Ritchie covers the Industrials sector, focusing on stocks such as Kennametal, Dover, and Honeywell International.