
Tennant (TNC) Stock Forecast & Price Target
Tennant (TNC) Analyst Ratings
Bulls say
Tennant Company has set ambitious long-term targets of 3-5% organic sales growth, up from the previous target of 2-3%, alongside a commitment to achieve 50-100 basis points of annual EBITDA margin expansion. The company demonstrated strong financial performance with a 25% increase in adjusted EPS driven by a gross margin expansion of 320 basis points, reaching 44.2%, and a robust free cash flow of $56 million that doubled forecasts. Regional sales growth contributed positively, with an 8% increase in the Americas and a 9% rise in Asia Pacific, highlighting increases in market demand and operational efficiency.
Bears say
Tennant Company is experiencing a decline in adjusted earnings per share (EPS) attributed to increased research and development (R&D) expenses and higher selling, general, and administrative (SG&A) costs. The company's backlog has significantly decreased from an abnormally high level in 2022, potentially indicating reduced future revenue growth, particularly reflected in the 1% decline in the Europe, Middle East, and Africa (EMEA) region. Additionally, free cash flow turned to zero, falling short of estimates due to costs related to ERP implementation, variable compensation, and temporary working capital issues, compounding concerns over its financial stability.
This aggregate rating is based on analysts' research of Tennant and is not a guaranteed prediction by Public.com or investment advice.
Tennant (TNC) Analyst Forecast & Price Prediction
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