William Blair analyst Ross Sparenblek has reiterated their bullish stance on MEC stock, giving a Buy rating today.
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Ross Sparenblek has given his Buy rating due to a combination of factors that highlight Mayville Engineering Company’s potential for growth and improved financial performance. The recent acquisition of Accu-Fab is a significant driver, as it is expected to enhance the company’s growth trajectory, margins, and overall business profile. This acquisition has already resulted in substantial new business and increased synergy targets, indicating a promising future for Mayville.
Furthermore, the company’s strategic focus on expanding its presence in the data center and critical power markets is anticipated to yield significant revenue growth. The optimization efforts at Accu-Fab’s facilities and the existing capacity at Mayville’s installations are expected to support this expansion. Additionally, the implementation of the Mayville Business Excellence program is set to mitigate current margin pressures and prepare for future volume growth, laying the groundwork for improved margins as legacy markets recover.
In another report released today, Northland Securities also maintained a Buy rating on the stock with a $18.00 price target.
Based on the recent corporate insider activity of 26 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MEC in relation to earlier this year.