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Investing.com - Raymond James initiated coverage on Techtronic Industries Co. (669:HK) (OTC:TTNDY) with an Outperform rating and a price target of HK$105.00. According to InvestingPro data, Techtronic currently trades at a P/E ratio of 19.04 and appears undervalued based on InvestingPro’s Fair Value assessment.
The investment firm highlighted Techtronic’s strong competitive position in the cordless tool market, where it ranks as the global leader. Raymond James noted that the company’s Milwaukee brand alone likely commands 35-40% global share of cordless lithium-ion power tools. InvestingPro identifies Techtronic as a prominent player in the Machinery industry with a perfect Piotroski Score of 9, indicating exceptional financial strength.
Raymond James expects Techtronic’s continued investments in innovation, research and development, and sales support to drive sales growth ahead of industry averages, particularly in the higher-margin professional product category. This aligns with the company’s recent performance, as InvestingPro data shows Techtronic achieved 6.91% revenue growth over the last twelve months to $15.14 billion, with a healthy gross profit margin of 40.49%.
The firm also pointed to potential upside from valuation multiple expansion, as the stock currently trades near the low end of its historical range. Additionally, Raymond James views the significant equity ownership by Founder and Chairman Horst Pudwill as a positive sign of alignment between management and shareholders. The stock’s current price of $60.35 represents a 20% discount from its 52-week high of $75.74, offering potential upside opportunity.
Raymond James tempered its enthusiasm by noting two risk factors: challenging near-term industry demand conditions and potential geopolitical and tariff risks that could affect the company. Despite these concerns, InvestingPro data indicates Techtronic operates with a moderate level of debt and maintains liquid assets exceeding short-term obligations. For deeper insights on Techtronic and access to comprehensive Pro Research Reports on 1,400+ top stocks, visit InvestingPro.
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