AZZ (NYSE:AZZ) Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded AZZ from “buy” to “hold,” even as the broader analyst view remains constructive with a “Moderate Buy” consensus and a $155 average price target.
• AZZ’s latest earnings beat expectations, reporting $1.85 EPS versus $1.80 expected and revenue of $448.53 million versus $434.58 million estimated, with sales up 6.3% year over year.
• The stock has been trading near its highs, recently rising to $146.23, close to its 50-day average of $145.70 and below its 52-week high of $162.20, while institutions own more than 90% of shares.

AZZ (NYSE:AZZ - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Sunday.

Several other analysts also recently weighed in on the company. Weiss Ratings downgraded AZZ from a "buy (b+)" rating to a "buy (b)" rating in a research note on Thursday. Evercore reaffirmed an "outperform" rating and issued a $152.00 price objective on shares of AZZ in a report on Monday, April 27th. B. Riley Financial raised their price objective on shares of AZZ from $167.00 to $169.00 and gave the company a "buy" rating in a research report on Friday, April 24th. Robert W. Baird boosted their price objective on AZZ from $125.00 to $155.00 and gave the stock a "neutral" rating in a report on Friday, April 24th. Finally, Wells Fargo & Company raised their price objective on AZZ from $138.00 to $144.00 and gave the stock an "equal weight" rating in a research report on Friday. Four equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $155.00.

AZZ Price Performance

Shares of AZZ stock traded up $5.33 during midday trading on Friday, reaching $146.23. 436,130 shares of the company traded hands, compared to its average volume of 351,575. AZZ has a 1-year low of $92.98 and a 1-year high of $162.20. The firm has a market cap of $4.39 billion, a PE ratio of 22.29 and a beta of 1.11. The firm's 50 day simple moving average is $145.70 and its two-hundred day simple moving average is $133.44. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.92 and a quick ratio of 1.21.

AZZ (NYSE:AZZ - Get Free Report) last announced its earnings results on Wednesday, July 8th. The industrial products company reported $1.85 EPS for the quarter, beating analysts' consensus estimates of $1.80 by $0.05. AZZ had a return on equity of 14.18% and a net margin of 11.83%.The firm had revenue of $448.53 million for the quarter, compared to analysts' expectations of $434.58 million. During the same quarter in the prior year, the firm earned $1.78 EPS. AZZ's quarterly revenue was up 6.3% on a year-over-year basis. AZZ has set its FY 2027 guidance at 6.750-7.150 EPS. On average, equities research analysts expect that AZZ will post 6.85 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of AZZ. Hantz Financial Services Inc. increased its holdings in AZZ by 92.5% during the 4th quarter. Hantz Financial Services Inc. now owns 258 shares of the industrial products company's stock worth $28,000 after purchasing an additional 124 shares in the last quarter. Osterweis Capital Management Inc. acquired a new position in AZZ during the second quarter worth approximately $30,000. Kestra Advisory Services LLC bought a new stake in AZZ in the 4th quarter valued at $38,000. Clearstead Advisors LLC lifted its stake in shares of AZZ by 184.3% during the 4th quarter. Clearstead Advisors LLC now owns 361 shares of the industrial products company's stock worth $39,000 after buying an additional 234 shares during the last quarter. Finally, Fifth Third Bancorp increased its stake in shares of AZZ by 55.9% during the fourth quarter. Fifth Third Bancorp now owns 382 shares of the industrial products company's stock worth $41,000 after purchasing an additional 137 shares during the period. Institutional investors own 90.93% of the company's stock.

AZZ News Summary

Here are the key news stories impacting AZZ this week:

• Positive Sentiment: AZZ reported Q1 earnings of $1.85 per share, topping estimates, with revenue also beating expectations and rising year over year. AZZ Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: The company raised its FY2027 outlook, which investors may view as a sign that demand remains robust across its Metal Coatings and Precoat Metal segments. AZZ Shines in Q1 on Metal Coatings Momentum, Boosts Outlook
• Positive Sentiment: Analysts and market commentary highlighted momentum from infrastructure demand, which supports the stock’s recent strength. Why Is AZZ NYSE: AZZ in Focus as Infrastructure Demand Holds?
• Neutral Sentiment: Wells Fargo raised its price target on AZZ to $144 from $138, but kept an “equal weight” rating, implying limited upside from the current share price. Wells Fargo price target update
• Neutral Sentiment: Some commentary questioned whether the broader grid/infrastructure boom is enough to justify buying the stock at current levels. AZZ Inc.: The Grid Boom May Not Be Enough To Justify Buying Here

About AZZ

AZZ Inc, incorporated in 1956 and headquartered in Fort Worth, Texas, is a leading provider of galvanizing and metal finishing solutions alongside electrical equipment and services. The company supports a diverse range of industries—such as energy, infrastructure, heavy equipment and general industrial markets—by delivering corrosion protection and high-performance electrical solutions designed for demanding environments.

AZZ operates two primary business segments. The Global Coatings & Services segment offers hot-dip galvanizing, metal finishing, painting, powder coating and related value-added services to steel fabricators and original equipment manufacturers.

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