AIMC - Altra Industrial Motion Not Just A Play On Recovery Themes

• Altra beat second quarter sell-side expectations, but came up a bit short on margins with cost/supply chain headwinds; relative to peers, the results were very much in line.
• Altra is seeing strong demand in most of its markets, including factory automation, transportation, and material handling, and automation and renewables demand should have legs.
• Margin improvement remains high on the to-do list, with a meaningful gap in the underlying profitability of PTT and A&S, but opportunities to improve PTT further.
• Few industrial stocks are obviously cheap, but Altra should have near-term upside to around $70/share, and mid-to-high single-digit long-term annualized potential that's a little better than the average industrial.

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