VMI - Valmont Industries: Improving Growth Prospects And Good Long-Term Opportunity

2024-05-21 23:58:30 ET

Summary

• Valmont Industries is expected to see revenues bottoming in the coming quarters.
• The company is expected to benefit from increased investments in electricity infrastructure projects, IIJA fund deployment, easing comparisons in the telecom business, and healthy agriculture orders in middle eastern markets.
• VMI has a healthy balance sheet and the potential for bolt-on acquisitions, which could complement organic growth.

Investment Thesis

Valmont Industries ( VMI ) is well-positioned to deliver medium to long-term growth. The company's revenues should see a bottom in the coming quarters thanks to an increase in orders in North American business and a good project pipeline in Middle Eastern markets, which should help in the recovery of the Agriculture business. In addition, good demand and increased investments in the electricity infrastructure projects, an increase in the flow of IIJA funds, and easing comparisons in the Telecom business should benefit the infrastructure segment and help deliver revenue growth in the coming years. Further, the company should also benefit from bolt-on M&As given its healthy balance sheet....

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