HNI’s Growth Potential: Synergies, Expansion, and Market Trends Drive Buy Rating

HNI (HNI) has received a new Buy rating, initiated by Longbow Research analyst, David Macgregor.

David Macgregor has given his Buy rating due to a combination of factors that highlight HNI’s potential for growth and profitability. The company is recognized as a leader in the US Workplace Furnishings sector and has recently acquired a significant competitor, which is expected to create synergies and enhance earnings per share by $0.70-$0.80 over the fiscal years 2025 and 2026. Additionally, HNI’s expansion with a new plant in Mexico is anticipated to contribute positively to its financial performance.
Furthermore, the return-to-office trend in North America is projected to drive demand for HNI’s products, with a substantial opportunity for volume growth as order backlogs strengthen. The company’s cost management strategies are improving margins, which supports earnings growth alongside the integration benefits from the Kimball acquisition and the new Mexican facility. HNI’s Residential Building Products division, specializing in fireplaces and stoves, also shows promise with resilient margins and potential growth as the residential market recovers. These factors collectively underpin Macgregor’s optimistic outlook and Buy rating for HNI.