Baird maintains Neutral rating, raises Franklin Electric's PT to $107 from $94.

Baird maintains Neutral rating, raises Franklin Electric's PT to $107 from $94.

In a recent update, Robert W. Baird & Co. has maintained a neutral rating for Franklin Electric (NASDAQ:FELE) while raising its price target to $107 from the previous $94. This move comes following Franklin Electric's latest earnings report and guidance for fiscal year 2025 [1].

The company reported earnings per share (EPS) of $1.31 for the quarter, which exceeded analysts' consensus estimates of $1.28. Additionally, Franklin Electric provided EPS guidance of $3.950-$4.250 for the fiscal year 2025, compared to the consensus estimate of $4.125. Revenue guidance was set at $2.1 billion-$2.2 billion, aligning with the consensus estimate of $2.1 billion [1].

Baird's decision to raise the price target reflects a positive outlook on Franklin Electric's financial performance and strategic initiatives. However, the analyst also noted that technical indicators and valuation suggest caution, with limited immediate upside potential. The firm's strong capital management and effective strategic initiatives are seen as key drivers for the company's positive outlook [2].

Franklin Electric's stock has shown resilience, with shares opening at $96.37 on Tuesday following the earnings announcement. The company has a market capitalization of $4.39 billion, a P/E ratio of 25.23, and a debt-to-equity ratio of 0.01. The 50-day and 200-day moving averages are $88.86 and $93.03, respectively [1].

Institutional investors have also shown interest in Franklin Electric, with several hedge funds and other institutional investors boosting their stakes in the company. For instance, NewEdge Advisors LLC increased its holdings by 30.6% in the first quarter, while Royal Bank of Canada lifted its holdings by 81.6% [1].

Despite the positive outlook, Baird's neutral rating indicates a cautious approach. The analyst's decision to raise the price target to $107 suggests a belief in the company's long-term potential, but also highlights the need for careful consideration of current market conditions and valuation metrics.

References:
[1] https://www.marketbeat.com/instant-alerts/franklin-electric-nasdaqfele-issues-fy-2025-earnings-guidance-2025-07-29/
[2] https://www.tipranks.com/stocks/fele/forecast