William Blair analyst Ross Sparenblek has reiterated their bullish stance on SXI stock, giving a Buy rating on November 24.
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Ross Sparenblek has given his Buy rating due to a combination of factors that indicate a promising future for Standex International. The company’s strategic initiatives, particularly in the Standex Electronics Grid (SEG) business, are showing significant growth potential. The SEG business has exceeded expectations with a 30% growth over the past year, and Standex is actively expanding its capacity to leverage the growing global transformer market.
Additionally, the company’s focus on portfolio optimization and capital allocation is expected to support its growth trajectory. Standex’s exposure to cyclical end-markets is at a low point, and its investments in new products are beginning to pay off. Sparenblek anticipates a conservative 20% growth in adjusted EPS over the next two years, with potential for further upside as the company works towards its 2028 targets. The fair value estimate of $270 per share reflects confidence in Standex’s ability to achieve these goals.
In another report released on November 24, D.A. Davidson also maintained a Buy rating on the stock with a $272.00 price target.