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Alta Equipment Upgraded to Outperform by Northland Analyst
ByAinvest
Wednesday, Jul 9, 2025 2:26 am ET1min read
Alta Equipment was upgraded to Outperform from Market Perform at Northland by analyst Ted Jackson. The upgrade comes after Alta began publishing pro forma free cash flow metrics, leading to a pro forma free cash flow forecast that suggests the shares are undervalued. Jackson set a $20 price target for the company.
Alta Equipment Group (NYSE: ALTG) has received a significant boost from Northland analyst Ted Jackson, who upgraded the stock to Outperform from Market Perform. The upgrade comes following Alta's publication of pro forma free cash flow metrics, which led to a pro forma free cash flow forecast suggesting the shares are undervalued. Jackson has set a $20 price target for the company [1].Alta Equipment Group has shown strong momentum recently, with a 10.27% return over the past week, trading at $8.01 with a market capitalization of $246 million [2]. The upgrade follows the company's release of pro forma free cash flow metrics and supporting data that align with GAAP financials. Northland's analysis of this data indicates that Alta Equipment Group's shares are "meaningfully undervalued" at current levels.
Despite mixed financial results for the first quarter of 2025, where revenue decreased by 4.2% year-over-year and adjusted EBITDA fell by $500,000, Alta Equipment Group managed to improve gross margins, particularly in the service segment, and reduce selling, general, and administrative expenses by $7.9 million [2]. The company has also suspended its quarterly dividend and expanded its share repurchase program, signaling a shift in capital allocation strategy.
Other analysts have maintained confidence in the stock's value. DA Davidson lowered its price target from $9.00 to $8.00 but maintained a Buy rating, while Stifel analysts noted stable demand in the Construction Equipment sector and promising bookings and margins in the Material Handling division [2].
Alta Equipment Group's strategic initiatives, including divesting non-core assets and focusing on operational efficiency, are aimed at enhancing shareholder value amidst economic uncertainties.
References:
[1] https://www.tipranks.com/news/the-fly/alta-equipment-upgraded-to-outperform-from-market-perform-at-northland-thefly
[2] https://uk.investing.com/news/analyst-ratings/alta-equipment-group-stock-rating-upgraded-by-northland-on-cash-flow-outlook-93CH-4161080
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