ATKR Stock Forecast & Price Target

Atkore Inc. is exhibiting strong financial performance, with net sales in the electrical segment leading the way, supported by a notable rise in the Dodge Momentum Index, which is projected to contribute to a 6% year-over-year increase in non-residential construction starts by 2025. The company's earnings per share (EPS) are forecasted to grow from $8.30 in FY'23 to $9.82 in FY'27, reflecting a robust growth trajectory following a remarkable sales surge of 34% year-over-year, reaching a peak of $3.9 billion in FY'22. Additionally, despite an increase in customer concentration, Atkore's ability to adapt to rising raw material prices and an inflection point in margins suggest potential for favorable trading multiples, aligning closer to the peer group average.

Atkore Inc. faces a challenging outlook as it anticipates a decline in revenue and profits in FY'25, driven by significant price pressures and an expected mid-teens percentage decrease in pricing that may extend into the first half of FY’26. The company has also experienced a decrease in adjusted EBITDA, projected to fall from $1.04 billion in FY'23 to $771 million in FY'24, reflecting a normalization following previous growth. Additionally, the sales mix in key segments has trended downward, particularly in metal electrical conduit and mechanical pipe and tube sales, which may hinder overall revenue generation and profitability moving forward.