In recent trading, shares of Applied Industrial Technologies, Inc. (Symbol: AIT) have surpassed the average analyst 12-month target price of $229.50, with transactions happening at $234.39 per share. When a stock exceeds the price an analyst has estimated, they typically have two choices: either downgrade their recommendation due to valuation or adjust their price target higher. The actions of analysts may also depend on recent business developments that could be influencing the stock’s upward movement. If the company is on an upswing, it might be an opportune moment for a target price increase.
Within Zacks’ coverage universe, six different analysts are responsible for estimating the target price for Applied Industrial Technologies, Inc. However, the average of $229.50 is just that—an average. Analysts’ targets vary; for instance, one analyst is projecting a price of $210.00, while another believes it could reach as high as $245.00. The standard deviation among their targets is $11.64.
The rationale for examining the average AIT price target lies in the collective insight of multiple analysts, as opposed to valuing an opinion from a single expert. With AIT currently trading above the average target price, investors are prompted to re-evaluate the company’s prospects. They must consider whether the current price of $229.50 is just a pause before heading toward an even higher target or if it signifies that the stock’s valuation has become too stretched, warranting a cautious approach. Below is a table displaying the latest ratings from analysts covering Applied Industrial Technologies, Inc.:
| Recent AIT Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 4 | 4 | 4 | 4 |
| Buy ratings: | 1 | 1 | 0 | 0 |
| Hold ratings: | 2 | 1 | 1 | 1 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.71 | 1.5 | 1.4 | 1.4 |
The average rating calculated in the table above uses a scale from 1 to 5, where 1 indicates a Strong Buy and 5 a Strong Sell. The data utilized in this report is sourced from Zacks Investment Research via Quandl.com. For more information, get the latest research report on AIT — FREE.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
