Wall Street Zen Upgrades AZZ (NYSE:AZZ) to Buy

Key Points

• Wall Street Zen upgraded AZZ to “buy” from “hold,” contributing to a consensus “Moderate Buy” rating from analysts and an average price target of $153.20.
• AZZ reported strong quarterly results, with revenue rising 16.7% year over year to $486.9 million and EPS of $2.00 beating expectations; management set fiscal 2027 EPS guidance at $7.00–$7.30.
• Despite the positive earnings outlook, shares opened at $129.30 and remained below their 50-day and 200-day moving averages, while some analysts maintained neutral ratings and insiders recently sold shares.

AZZ (NYSE:AZZ - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

Several other analysts also recently weighed in on AZZ. Wells Fargo & Company boosted their target price on AZZ from $144.00 to $145.00 and gave the company an "equal weight" rating in a report on Thursday. B. Riley Financial upped their target price on AZZ from $170.00 to $174.00 and gave the company a "buy" rating in a research report on Thursday. Weiss Ratings restated a "buy (b)" rating on shares of AZZ in a research note on Tuesday, October 6th. Barclays raised their price target on AZZ from $140.00 to $145.00 and gave the stock an "equal weight" rating in a research note on Thursday. Finally, Robert W. Baird cut their price target on AZZ from $155.00 to $150.00 and set a "neutral" rating on the stock in a research report on Thursday. Four investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $153.20.

AZZ Stock Down 1.0%

Shares of NYSE:AZZ opened at $129.30 on Friday. The company has a market capitalization of $3.87 billion, a PE ratio of 23.30 and a beta of 1.13. The company has a current ratio of 1.79, a quick ratio of 1.39 and a debt-to-equity ratio of 0.33. AZZ has a twelve month low of $94.61 and a twelve month high of $162.20. The firm has a 50 day simple moving average of $139.03 and a 200-day simple moving average of $142.04.

AZZ (NYSE:AZZ - Get Free Report) last posted its earnings results on Tuesday, October 13th. The industrial products company reported $2.00 EPS for the quarter, beating analysts' consensus estimates of $1.88 by $0.12. AZZ had a net margin of 9.59% and a return on equity of 14.85%. The firm had revenue of $486.89 million for the quarter, compared to the consensus estimate of $467.14 million. During the same period last year, the firm posted $1.55 EPS. The company's revenue was up 16.7% on a year-over-year basis. AZZ has set its FY 2027 guidance at 7.000-7.300 EPS. On average, equities analysts predict that AZZ will post 7.11 EPS for the current fiscal year.

Insider Buying and Selling at AZZ

In other AZZ news, COO Jeffrey Vellines sold 4,220 shares of AZZ stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $153.55, for a total value of $647,981.00. Following the transaction, the chief operating officer directly owned 1,834 shares in the company, valued at approximately $281,610.70. The trade was a 69.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, COO Bryan Lee Stovall sold 2,677 shares of the firm's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $150.07, for a total value of $401,737.39. Following the transaction, the chief operating officer directly owned 35,000 shares in the company, valued at approximately $5,252,450. This represents a 7.11% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 1.70% of the company's stock.

Institutional Investors Weigh In On AZZ

Several hedge funds have recently modified their holdings of the stock. PDT Partners LLC acquired a new stake in shares of AZZ in the 2nd quarter worth $1,597,000. Public Employees Retirement System of Ohio purchased a new stake in shares of AZZ in the second quarter valued at about $2,716,000. Bank of America Corp DE purchased a new stake in shares of AZZ in the second quarter valued at about $32,505,000. Jupiter Topco LLC acquired a new position in shares of AZZ during the second quarter worth about $14,588,000. Finally, Legal & General Group Plc acquired a new position in shares of AZZ during the second quarter worth about $10,411,000. 90.93% of the stock is owned by institutional investors and hedge funds.

AZZ News Summary

Here are the key news stories impacting AZZ this week:

• Positive Sentiment: AZZ reported record quarterly sales of $486.9 million, up 16.7% year over year, while EPS of $2.00 exceeded the $1.82 analyst consensus. Management also raised fiscal 2027 EPS guidance to $7.00–$7.30, supporting the company’s growth outlook. AZZ Analysts Boost Their Forecasts After Upbeat Q2 Results
• Positive Sentiment: Noble Financial raised its AZZ EPS forecasts for fiscal 2027 through fiscal 2031. The firm now expects $7.15 for fiscal 2027, $7.67 for fiscal 2028, $8.00 for fiscal 2029, $8.34 for fiscal 2030 and $8.70 for fiscal 2031, indicating confidence in longer-term earnings growth.
• Positive Sentiment: Wells Fargo increased its price target to $145 from $144, implying meaningful potential upside from the referenced trading level, although it retained an “equal weight” rating.
• Neutral Sentiment: Barclays initiated coverage with an “equal weight” rating and a $140 price target, while Robert W. Baird maintained a “neutral” rating despite reducing its target to $150 from $155. The ratings suggest analysts see upside but remain cautious about valuation and execution. AZZ Lifts Guidance Following Record Sales
• Negative Sentiment: Noble Financial trimmed its fiscal 2027 third- and fourth-quarter EPS estimates to $1.75 and $1.55, respectively. These modest near-term reductions may be weighing on the stock even though full-year and longer-range estimates increased.
• Negative Sentiment: The market’s reaction has remained subdued after the earnings beat, reflecting concerns that the strong results and raised guidance may already be reflected in AZZ’s valuation. The shares also remain below their 50-day and 200-day moving averages, adding technical pressure.

AZZ Company Profile

AZZ Inc is a provider of metal coating solutions serving customers primarily in North America. The company operates through its Metal Coatings and Precoat Metals segments, helping protect and enhance the performance, appearance, and durability of steel and other metal products used across a range of industries.

Through its Metal Coatings segment, AZZ provides hot-dip galvanizing, powder coating, anodizing, plating, and related coating services. These treatments are used for corrosion protection and finishing applications involving infrastructure, construction, industrial, transportation, and other metal products.

Precoat Metals provides coil coating services for steel and aluminum products before they are fabricated.

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