Positive Long-Term Outlook for Miller Industries Despite Short-Term Challenges

D.A. Davidson analyst Michael Shlisky maintained a Buy rating on Miller Industries (MLR – Research Report) today and set a price target of $71.00.

Michael Shlisky has given his Buy rating due to a combination of factors influencing Miller Industries. Despite a recent decline in stock price following a significant earnings miss and challenging guidance for 2025, Shlisky maintains a positive outlook. The primary issue affecting the company is the excess chassis inventory held by dealers, which has temporarily impacted sales. However, this is seen as a short-term challenge that is expected to diminish by the second half of 2025.
Shlisky emphasizes the strong underlying demand trends in the tow truck market, which supports the long-term earnings potential of Miller Industries. He believes that as the inventory overhang is resolved, the company’s earnings power will improve. The Buy rating is supported by a new price target of $71, based on a valuation of 14 times forward EBITDA, reflecting confidence in the company’s ability to overcome current obstacles and capitalize on market demand.

Shlisky covers the Industrials sector, focusing on stocks such as Wabash National, Shyft Group, and Titan International. According to TipRanks, Shlisky has an average return of -0.9% and a 37.75% success rate on recommended stocks.