Simply Wall St believes Miller Industries is worth 50% more than its current share price, having set the highest target price on Wall Street at $105.3 per share. Meanwhile, Freedom Broker downgraded the name in early December, dropping their “buy” recommendation.
Details
Simply Wall St values Miller Industries at $105.30 per share, which is 48% higher than the current price. On Friday, December 13, the stock closed at $71.40 per share. Simply Wall St cautioned that it is unlikely for the stock to hit its target price quickly. However, it underscored that once the price starts rising, entry points for buying are unlikely to be as attractive as now. They believe at current prices, Miller is a bargain and presents a good investment.
Simply Wall St forecasts that Miller’s earnings will grow 14% annually over the next several years, accompanied by increased cash flow. These factors, it concluded, should push the stock higher.
Simply Wall St’s target price is the most upbeat out there. According to MarketWatch, the highest target price for Miller Industries is $82 per share, with the average target price at $78 per share. That is between the two analysts who cover the stock, who have mixed recommendations: one has a “buy” but the other a “hold.”
About the company
Miller Industries manufactures specialized tow trucks and recovery equipment and sells them globally. In the third quarter of 2024, revenue rose 14.5% year over year to $314.3 million. Still, this growth represented a slowdown versus that in the previous-year same quarter, when the top line surged 33.6%. Adjusted net income per share fell 12.3% in the third quarter to $1.33.
Following the third-quarter earnings report, Freedom Broker downgraded Miller Industries from “buy” to “hold,” while maintaining its target price at $74 per share. It cited slowing sales growth, though the company’s cash flows have improved due to reduced accounts receivable. Freedom Broker also lowered its revenue forecast for the fourth quarter by 2.5% to $314 million, which would be a 6% year-over-year improvement.
Since the beginning of the year, Miller Industries shares have gained nearly 70%. Over the summer, analysts at InvestorPlace spotlighted the company as one of three small-cap stocks “mastering the art of outsized returns” versus the Russell 2000 index.
