Benchmark analysts raised the price target on HNI Corp (NYSE:HNI) to $57.00 (from $54.00) while maintaining a Buy rating.
The analysts commented: "Last week, HNI Corporation announced the planned 1H25 closure of its Hickory, NC, manufacturing plant as another step in its Kimball integration and footprint
optimization efforts. The move (expected to save ~$11MM annually), combined with an incremental $4MM in procurement savings found, takes total synergies associated with the KII acquisition up to $50MM (twice the original targets laid out just a year ago). While there is little change to FY24, these new savings and a closer look at what’s left to come results in our EPS estimate for next year moving to $3.60 (up from $3.40). Importantly, >90% of our modeled earnings growth for FY25 comes from items within the company’s control. Said differently, we think our estimates could prove conservative if we see the mid-single-digit top line growth that we are modeling. With our estimates moving higher, we are reiterating our Buy rating with a new, higher price target of $57 (up from $54)."