Atkore downgraded to Hold from Buy at Loop Capital

Loop Capital last night downgraded Atkore (ATKR) to Hold from Buy with a price target of $65, down from $115. The firm lacks confidence that a “durable pricing floor” has been reached. Competition, both domestic and imports, has increased “dramatically” in the past year for Atkore and new capacity is still coming online even as costs have increased versus pre-pandemic levels, the analyst tells investors in a research note. In addition, the company’s governmental risk offers a “mixed bag,” contends Loop. It says that while tariffs and/or import controls could provide a positive catalyst, “noise” about deportation and the risk to construction activity “provides an offsetting downside risk.”