AZZ Inc. initiated with a Buy at Roth MKM

Roth MKM initiated coverage of AZZ Inc. (AZZ) with a Buy rating and $108 price target The firm cites the company’s “steady” organic growth, operational efficiencies, and expanding free cash flow for the Buy rating. It expects AZZ to benefit from macroeconomic and secular growth drivers, enabling annual organic growth of 4%-5%. In addition, the company’s tolling model creates a “highly stable” margin profile which combined with growth, lower interest costs, and reduced spending should drive accelerating free cash flow, the analyst tells investors in a research note.