2024-03-20 05:41:05 ET
Summary
- Powell Industries is positioned at the intersection of 3 major megatrends: the transition towards clean energy, the rise of AI, and the reshoring of American manufacturing.
- The company generates an ROE of 35.6%, is growing revenues by 53% yoy and earnings by 141% yoy but only trades at 13.5x 2024 earnings.
- I have a target price of $400 per share, representing 176% upside from current levels, based on where peers are currently trading.
Thesis
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Powell Industries: Riding The Compounding Wave Of Renewables, AI And Reshoring