William Blair analyst Ross Sparenblek has maintained their bullish stance on SPXC stock, giving a Buy rating yesterday.
Ross Sparenblek has given his Buy rating due to a combination of factors including SPX Technologies’ strategic acquisition of Sigma Heating and Cooling and Omega Heat Pump. This acquisition, valued at $144 million, is expected to significantly enhance SPX’s product offerings in the hydronic heating and cooling equipment sector, which is a promising area for growth. The deal is anticipated to generate substantial revenue and provide strong cross-selling opportunities in the U.S. market, leveraging SPX’s existing network.
Furthermore, despite the challenging macroeconomic environment, SPX’s ability to execute its M&A strategy effectively demonstrates its resilience and strategic foresight. The acquisition is projected to slightly increase earnings per share by 2025, with expectations of improved margins over time due to minimal capital expenditure requirements for expanding Sigma & Omega’s manufacturing capabilities. These factors collectively underpin Sparenblek’s confidence in SPX’s potential for long-term growth and profitability.
Sparenblek covers the Industrials sector, focusing on stocks such as SPX, MSA Safety, and Mayville Engineering Company. According to TipRanks, Sparenblek has an average return of 2.8% and a 40.00% success rate on recommended stocks.
In another report released yesterday, Sidoti also maintained a Buy rating on the stock with a $175.00 price target.