NN, Inc. (NN) reported promising first-quarter results with $16.4 million in new business wins, placing the company on track to achieve its 2025 goal of securing $65 million in new business awards. These new contracts are expected to significantly contribute to the company's revenue, with approximately $98 million set to flow into the revenue stream by 2025 and beyond.
The latest wins are concentrated in strategic growth sectors, including non-automotive industrial products, electrical and power products, medical equipment, and the automotive industry. NN has successfully leveraged its asset base, valued at over $340 million, and is selectively expanding capacity in key areas to support this growth.
Since the beginning of 2023, NN has secured over $150 million in new business, exceeding its five-year goal trajectory. This accomplishment reinforces the company’s long-term net sales objectives, which are based on the assumption of a stable market for its ongoing business segments. Currently, NN's expanding pipeline exceeds $340 million, with about half focused on electrical, medical, and industrial sectors.
In addition to growing its business, NN has made significant strides in improving operational efficiency. The company's adjusted EBITDA rate has surpassed its five-year target, due to effective cost-improvement initiatives and new business acquisitions. Consequently, NN has revised its five-year adjusted EBITDA target range upwards to 13-14%, compared to the previous 12-13% range. Despite minimal direct tariff impacts due to its strong US manufacturing presence, NN maintains its prior adjusted EBITDA guidance for 2025.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for NN Inc (NNBR, Financial) is $6.50 with a high estimate of $7.00 and a low estimate of $6.00. The average target implies an upside of 283.48% from the current price of $1.70. More detailed estimate data can be found on the NN Inc (NNBR) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, NN Inc's (NNBR, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for NN Inc (NNBR, Financial) in one year is $2.37, suggesting a upside of 39.82% from the current price of $1.695. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the NN Inc (NNBR) Summary page.
