Applied Industrial Technologies Surpasses Analyst Price Target, What’s Next?
In recent trading, shares of Applied Industrial Technologies, Inc. (Symbol: AIT) have risen above the average analyst 12-month target price of $267.86, currently trading at $269.23 per share. When a stock hits an analyst’s target, there are two typical responses: a downgrade on valuation or an upward revision of the target price. Analyst responses may also vary based on the company’s performance and overall market conditions—if business prospects are improving, raising the target price could be warranted.
There are seven different analyst targets within the Zacks coverage universe contributing to the average for Applied Industrial Technologies, Inc. However, this average is simply a mathematical figure. Some analysts have more conservative targets, such as one predicting a price of $240.00, while others aim higher, projecting a target of $305.00. The standard deviation among these targets is $22.886, indicating varying opinions on the stock’s potential.
The reason for examining the average AIT price target is to utilize a “wisdom of crowds” approach, combining insights from various analysts rather than relying on a single viewpoint. With AIT now above the average target price of $267.86 per share, it presents an opportunity for investors to reassess the stock. They must consider whether this price mark is just a milestone on the way to an even higher target, or if the stock has become overvalued, prompting the need to take some profits. Below is a table detailing the latest opinions from analysts covering Applied Industrial Technologies, Inc.:
| Recent AIT Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 5 | 4 | 4 | 4 |
| Buy ratings: | 1 | 1 | 1 | 0 |
| Hold ratings: | 2 | 2 | 1 | 1 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.63 | 1.71 | 1.5 | 1.4 |
The average rating shown in the final row of the table ranges from 1 to 5, where 1 indicates a Strong Buy and 5 indicates a Strong Sell. This analysis utilizes data from Zacks Investment Research via Quandl.com. For ongoing insights, continue to access the latest Zacks research report on AIT at no cost.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
