Seeking Alpha

Actuant cut at KeyBanc, Gabelli on valuation

|By:, SA News Editor

Actuant (ATU -2.8%) slides after analysts at both KeyBanc and Gabelli downgrade shares to Hold equivalent ratings.

KeyBanc analyst Jeffrey Hammond says he appreciates the logic behind ATU's near-complete portfolio transformation, but valuation has become less compelling in the mid-$20s, and with 2020's significant EBITDA growth potential already baked in the current multiple, he fails to see additional catalysts for share upside aside from M&A.

Gabelli's Justin Bergner thinks investors may have underestimated the earnings upside from the $214M sale of engineered components and systems, saying upside is limited against a $21/share fiscal year-end 2021 PMV.

ATU's average Sell Side Rating is Hold, its Seeking Alpha Authors Rating is Neutral, and its Quant Rating is Bearish.

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