- 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.
For further details see:
Altra Industrial Motion Not Just A Play On Recovery Themes