Investment firm William Blair has elevated its rating for Valmont Industries (VMI, Financial) from Market Perform to Outperform, following a key update from the company's management. During a recent earnings call, Valmont clarified that its products manufactured in Mexico using steel sourced from the United States are exempt from the 25% tariff, as per the existing regulations.
This exemption, coupled with strategic measures undertaken by Valmont's management to cushion the effects of tariffs, has prompted the company to predict an insignificant impact on its earnings from these tariffs by 2025. These developments have reversed a previous downgrade by William Blair, which was initially made due to uncertainties surrounding tariff implications.
The strategic positioning of Valmont's supply chain and proactive management actions are expected to stabilize the company's financial outlook, influencing the firm's decision to restore its confidence in Valmont's market prospects.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Valmont Industries Inc (VMI, Financial) is $372.75 with a high estimate of $441.00 and a low estimate of $325.00. The average target implies an upside of 33.95% from the current price of $278.28. More detailed estimate data can be found on the Valmont Industries Inc (VMI) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Valmont Industries Inc's (VMI, Financial) average brokerage recommendation is currently 2.3, 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 Valmont Industries Inc (VMI, Financial) in one year is $296.43, suggesting a upside of 6.52% from the current price of $278.28. 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 Valmont Industries Inc (VMI) Summary page.
