Core Molding Technologies (CMT) has received a new Buy rating, initiated by Roth MKM analyst, Chip Moore.
Chip Moore has given his Buy rating due to a combination of factors that position Core Molding Technologies (CMT) favorably in the marketplace. The recommendation considers the stock’s potential for growth, especially given its recent sell-off which provides an attractive entry point for investors. Despite a conservative outlook in the short term due to possible macroeconomic challenges and an inventory correction phase, Moore sees a resilience in profitability and anticipates growth to pick up in 2025, driven by the ramp-up of new business wins. This growth is underpinned by the company’s unique standing as a producer of structural composite components, which are seeing increased demand across varied end markets due to their benefits over traditional materials.
Additionally, the company’s strategic transformation and focus on becoming a key partner in providing high-value composite solutions enhance its appeal. The shift from being highly dependent on the trucking market to diversifying its client base underscores management’s successful efforts in steering the company toward growth areas. Strong secular trends, such as infrastructure investment, onshoring, and sustainability, further support CMT’s potential. The company’s proactive approach to sustainability, including initiatives for scrap reduction and recyclable materials, positions it as a forward-thinking player in the industry. Moore’s $24 price target is anchored on a valuation that uses a 4.5x EV/EBITDA multiple based on adjusted EBITDA estimates for 2025, reflecting the company’s expected earnings potential and robust market position.
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Based on the recent corporate insider activity of 62 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CMT in relation to earlier this year.
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Core Molding Technologies (CMT) Company Description:
Core Molding Technologies, Inc. engages in the manufacture of sheet molding compound; and molding of fiberglass reinforced plastics. It focuses on producing large-format moldings and offers a range of fiberglass processes, spray-up, hand-lay-up, and resin transfer molding. The company produces and sells products for light, medium, and heavy-duty trucks, automobiles and automotive aftermarket, marine, construction and other commercial products. Core Molding Technologies was founded in 1996 and is headquartered in Columbus, OH.
Read More on CMT:
- Core Molding Technologies Presenting at the 15th Annual Southwest IDEAS Investor Conference on November 16th in Dallas, TX
- Core Molding reports Q3 adjusted EPS 53c vs 35c last year
- Core Molding Technologies Reports Fiscal 2023 Third Quarter Results
- CMT Upcoming Earnings Report: What to Expect?
- Core Molding appoints Salvador Minarro to board of directors
