NN, Inc. (NNBR) Begins Coverage with Buy Rating and $4.00 Price Target

NN, Inc. (NNBR) has been initiated with a Buy rating and a $4.00 price target by B. Riley. The firm highlights NN's leadership in high-precision metal components and notes previous management's challenges due to supply chain issues. The company has faced declining revenue and profitability, but its focus on high-precision manufacturing positions it to leverage growth in automotive and aerospace markets. NN Inc's valuation is modest, with a P/S ratio of 0.22 and P/B ratio of 1.47.

B. Riley has initiated coverage on NN, Inc. (NASDAQ:NNBR) with a Buy rating and a $4.00 price target, as reported by Investing.com [1]. The research firm highlights NN, Inc.'s position as a leading developer and manufacturer of high-precision metal components, with a strong focus on machining, stamping, and precious metal plating. Despite recent challenges, including supply chain difficulties during the COVID-19 pandemic, B. Riley notes that NN's reputation for quality is "unquestioned and well-deserved."

NN, Inc. has seen its stock decline by over 50% in the past year, trading at $1.95 with a market capitalization of $98 million. The company's debt-to-equity ratio stands at 3.07, indicating a significant debt burden, though its current ratio of 1.92 suggests adequate liquidity to meet short-term obligations. B. Riley believes that NN's "beyond reliable" tagline is supported by its longstanding history of delivering quality stamped and machined products to strategic partners such as BYD, Bosch, Cummins, ZF, Nexteer, Itron, ABB, and Schneider.

Recent earnings reports have shown mixed results. In the first quarter of 2025, NN Inc. reported a flat adjusted EBITDA and a slight decline in net sales, although earnings per share met expectations. The company's focus on high-precision manufacturing positions it well to leverage growth in the automotive and aerospace markets. NN Inc.'s valuation is modest, with a price-to-sales ratio of 0.22 and a price-to-book ratio of 1.47.

NN Inc.'s recent leadership changes, including the appointment of Timothy Erro as Vice President and Chief Commercial Officer, are part of the company's strategy to expand its new business program. These developments highlight key changes and challenges for NN Inc. as it navigates a competitive market landscape.

References:

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