Barclays Initiates Coverage on AZZ (NYSE:AZZ)

Barclays initiated coverage on shares of AZZ (NYSE:AZZ) in a note issued to investors on Wednesday, MarketBeat.com reports. The brokerage set an “equal weight” rating and a $140.00 price target on the industrial products company’s stock. Barclays‘s target price would indicate a potential upside of 4.40% from the stock’s previous close.

Several other brokerages have also recently issued reports on AZZ. B. Riley Financial lifted their target price on shares of AZZ from $169.00 to $170.00 and gave the stock a “buy” rating in a research note on Monday, July 13th. Wells Fargo & Company increased their target price on shares of AZZ from $138.00 to $144.00 and gave the company an “equal weight” rating in a research report on Friday, July 10th. Wall Street Zen downgraded shares of AZZ from a “buy” rating to a “hold” rating in a research note on Sunday, July 12th. Finally, Weiss Ratings restated a “buy (b)” rating on shares of AZZ in a research report on Tuesday, October 6th. Four research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, AZZ has a consensus rating of “Moderate Buy” and a consensus target price of $152.20.

AZZ Price Performance

NYSE:AZZ traded down $3.56 during trading hours on Wednesday, reaching $134.10. 23,474 shares of the company were exchanged, compared to its average volume of 233,170. The company has a current ratio of 1.92, a quick ratio of 1.39 and a debt-to-equity ratio of 0.35. The stock’s 50-day moving average is $139.88 and its 200-day moving average is $142.08. The firm has a market cap of $4.03 billion, a PE ratio of 24.20 and a beta of 1.13. AZZ has a twelve month low of $94.61 and a twelve month high of $162.20.

AZZ (NYSE:AZZ) last released its quarterly earnings results on Tuesday, October 13th. The industrial products company reported $2.00 earnings per share for the quarter, topping the consensus estimate of $1.86 by $0.14. AZZ had a net margin of 9.59% and a return on equity of 15.05%. The firm had revenue of $486.89 million during the quarter, compared to the consensus estimate of $463.44 million. During the same quarter in the prior year, the firm earned $1.55 EPS. The company’s revenue for the quarter was up 16.7% on a year-over-year basis. AZZ has set its FY 2027 guidance at 7.000-7.300 EPS. On average, sell-side analysts anticipate that AZZ will post 7.06 earnings per share for the current fiscal year.

Insider Activity at AZZ

In other news, COO Bryan Lee Stovall sold 2,677 shares of the firm’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $150.07, for a total transaction of $401,737.39. Following the completion of the sale, the chief operating officer owned 35,000 shares in the company, valued at $5,252,450. This trade represents a 7.11% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Jeffrey Vellines sold 4,220 shares of the firm’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $153.55, for a total transaction of $647,981.00. Following the sale, the chief operating officer owned 1,834 shares of the company’s stock, valued at $281,610.70. This represents a 69.71% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 1.70% of the company’s stock.

Institutional Investors Weigh In On AZZ

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Kilter Group LLC acquired a new stake in AZZ in the 2nd quarter valued at approximately $33,000. Allworth Financial LP purchased a new stake in AZZ in the second quarter valued at approximately $60,000. Integrated Wealth Concepts LLC acquired a new position in AZZ during the second quarter worth $66,000. Harbor Investment Advisory LLC acquired a new position in AZZ during the second quarter worth $67,000. Finally, GAMMA Investing LLC boosted its position in shares of AZZ by 27.5% during the third quarter. GAMMA Investing LLC now owns 658 shares of the industrial products company’s stock worth $88,000 after buying an additional 142 shares during the period. Hedge funds and other institutional investors own 90.93% of the company’s stock.

Key Headlines Impacting AZZ

Here are the key news stories impacting AZZ this week:

• Positive Sentiment: AZZ reported adjusted EPS of $2.00, beating the $1.86 consensus estimate, while revenue rose 16.7% year over year to $486.9 million, above expectations. Both Metal Coatings and Precoat Metals delivered record quarterly sales, supporting investor confidence in continued operating growth. AZZ fiscal 2027 second-quarter results
• Positive Sentiment: Adjusted EBITDA increased 22.8% to $110.9 million, margins improved, and operating cash flow surged 76.1% to $102.8 million. AZZ also repurchased $20 million of stock and completed the acquisition of Seattle Galvanizing, adding support for shareholder returns and expansion. AZZ tops second-quarter EPS and raises guidance
• Positive Sentiment: Management raised fiscal 2027 guidance to revenue of $1.8 billion-$1.9 billion and EPS of $7.00-$7.30. The midpoint is broadly aligned with analyst expectations, but the guidance increase reinforces the view that demand and execution remain healthy.
• Neutral Sentiment: Barclays upgraded AZZ to “hold” or “equal weight,” which is less bearish than a sell-oriented view but does not provide a strong bullish catalyst. Barclays initiates coverage of AZZ at equal weight
• Negative Sentiment: Robert W. Baird lowered its price target from $155 to $150 and assigned a neutral rating. Although the revised target still implies potential upside, the reduction indicates more limited near-term appreciation after the recent earnings strength.
• Negative Sentiment: Reported GAAP net income and EPS declined year over year because the prior-year period benefited from a one-time equity gain related to AZZ’s AVAIL joint venture. While adjusted earnings improved substantially, the GAAP decline could temper enthusiasm among some investors. AZZ second-quarter profit report

AZZ Company Profile

AZZ Inc is a provider of metal coating solutions serving customers primarily in North America. The company operates through its Metal Coatings and Precoat Metals segments, helping protect and enhance the performance, appearance, and durability of steel and other metal products used across a range of industries.

Through its Metal Coatings segment, AZZ provides hot-dip galvanizing, powder coating, anodizing, plating, and related coating services. These treatments are used for corrosion protection and finishing applications involving infrastructure, construction, industrial, transportation, and other metal products.

Precoat Metals provides coil coating services for steel and aluminum products before they are fabricated.