William Blair analyst Brian Drab has maintained their bullish stance on THR stock, giving a Buy rating today.
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Brian Drab has given his Buy rating due to a combination of factors including Thermon Group Holdings’ solid financial performance and promising future prospects. The company reported strong fourth-quarter results with a 3% organic sales increase and an adjusted EPS that exceeded expectations. Despite a year-over-year decline in large-project revenue, there was a notable sequential improvement, particularly in the LNG sector following the lifting of the moratorium on LNG export permits in the U.S.
Additionally, Thermon is entering fiscal 2026 with several positive indicators. The backlog has increased significantly, and there is a rise in orders, indicating strong demand. The company’s management is observing heightened activity in key areas such as LNG, electric boilers, and data centers. Although the revenue guidance for fiscal 2026 reflects caution due to macroeconomic uncertainties, the robust order book and potential growth in these sectors suggest that the guidance may be conservative. This combination of current performance and future potential underpins Drab’s Buy rating for Thermon Group Holdings.
Drab covers the Industrials sector, focusing on stocks such as Xometry, Lindsay, and Kornit Digital. According to TipRanks, Drab has an average return of 18.3% and a 67.19% success rate on recommended stocks.
In another report released today, Roth MKM also reiterated a Buy rating on the stock with a $36.00 price target.
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