Applied Industrial Technologies Inc. (NYSE:AIT) is one of the 10 best industrial distribution stocks to invest in according to hedge funds. The broader consensus sentiment around Applied Industrial Technologies Inc. (NYSE:AIT) is strongly bullish. The stock has received Buy ratings from all 6 analysts covering it. Recent analyst ratings also support this favorable stance towards the stock.
On June 16, Chris Dankert from DA Davidson initiated coverage of Applied Industrial Technologies Inc. (NYSE:AIT). The analyst assigned a Buy rating to the stock with a price target of $380, implying upside potential of close to 18% from the current level.
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Dankert reflected on an encouraging industrial cycle that is evolving favorably at the moment. He views the company to be perfectly positioned to exhibit an impressive operating leverage, which would support an upward adjustment to future projections. The analyst believes that the company will witness accelerating gross margin, backed by tailwinds related to its structural mix.
Moreover, Dankert acknowledged the company’s sound financial position, as indicated by its clean balance sheet. This, along with strong cash-flow-generating ability, will allow management to deploy capital efficiently.
Applied Industrial Technologies Inc. (NYSE:AIT) distributes industrial products and solutions such as industrial bearings, power transmissions, pneumatic components, filtration supplies, and conveyor belt repair services. It also provides flow control products and advanced automation technologies. These include machine vision, engineered fluid power solutions, motion control, and industrial networking solutions.
CORRECTION: An earlier version of this article incorrectly stated that Applied Industrial Technologies Inc. (NYSE:AIT) signed a Letter of Intent (LOI) with ideaForge Technology Ltd. The LOI was signed by American Industrial Technologies Inc., a different company. The article has been updated to remove the incorrect reference.
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