NN, Inc. Gets a Boost from B. Riley with a Buy Rating and $4 Price Target

B. Riley initiated coverage of NN, Inc. with a Buy rating and $4 price target. The firm sees NN as a "best-in-class" developer of high-precision metal components and notes that its prior management faced supply chain difficulties. Despite this, the analyst believes the company has the potential for growth.

B. Riley has initiated coverage on NN, Inc. (NASDAQ:NNBR) with a Buy rating and a $4.00 price target [1]. The stock, currently trading at $1.95, has seen a significant decline of over 50% in the past year. The research firm sees NN, Inc. as a "best-in-class" developer and primarily Tier 2 manufacturer of high-precision (sub-micron), complex metal components. NN, Inc. operates with a debt-to-equity ratio of 3.07 and a current ratio of 1.92, indicating adequate liquidity to meet short-term obligations [1].

NN, Inc. serves a diverse range of strategic partners, including BYD (SZ:002594), Bosch (NSE:BOSH), Cummins (NYSE:CMI), ZF, and Nexteer in the automotive sector, as well as Itron (NASDAQ:ITRI), ABB (ST:ABB), and Schneider in the electrical power market [1]. Despite its reputation for quality, the company faced supply chain difficulties during the COVID-19 pandemic, which impacted its ability to meet on-time delivery and volume requirements [1].

Recent developments include NN Inc.'s first-quarter 2025 earnings report, which showed a flat adjusted EBITDA and a slight decline in net sales. The company's earnings per share met expectations, but revenue did not meet forecasts [1]. Additionally, NN Inc. appointed Timothy Erro as Vice President and Chief Commercial Officer, reporting directly to President and CEO Harold Bevis. This leadership change is part of the company’s strategy to expand its new business program [1].

B. Riley acknowledges the challenges NN Inc. has faced but believes the company has the potential for growth. The analyst's Buy rating and $4.00 price target reflect this optimism, suggesting that NN Inc. may be undervalued based on its Fair Value assessment [1].

References:
[1] https://ca.investing.com/news/analyst-ratings/briley-initiates-coverage-on-nn-inc-stock-with-buy-rating-and-4-target-93CH-4128306