Applied Industrial Technologies Inc (AIT) saw its stock price drop by 7.65% as it hit a 5-day low, despite positive market conditions with the Nasdaq-100 up 0.86% and the S&P 500 up 0.47%.
The company reported Q2 earnings of $2.51 per share, beating expectations by $0.02, and raised its quarterly dividend by 11% to $0.51 per share, reflecting strong cash flow and a positive outlook for fiscal 2026. However, revenue of $1.16 billion fell short of forecasts, indicating slight market demand fluctuations. This mixed performance suggests that while the company is maintaining profitability, it faces challenges in meeting revenue expectations amid macroeconomic uncertainties.
The increase in dividends and the earnings beat may attract long-term investors, but the stock's decline highlights the market's cautious sentiment towards AIT's revenue performance. Investors will be closely watching how the company navigates these challenges moving forward.
Wall Street analysts forecast AIT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AIT is 297.50 USD with a low forecast of 290.00 USD and a high forecast of 305.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
Wall Street analysts forecast AIT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AIT is 297.50 USD with a low forecast of 290.00 USD and a high forecast of 305.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 256.260
Low
290.00
Averages
297.50
High
305.00
Current: 256.260
Low
290.00
Averages
297.50
High
305.00
KeyBanc
Overweight
to
NULL
downgrade
$310 -> $300
2026-01-28
New
Reason
KeyBanc
Price Target
$310 -> $300
AI Analysis
2026-01-28
New
downgrade
Overweight
to
NULL
Reason
KeyBanc lowered the firm's price target on Applied Industrial Technologies to $300 from $310 and keeps an Overweight rating on the shares. The firm notes shares underperformed following mixed Q2 results and a weaker EBITDA margin guide. KeyBanc thinks buy-side expectations were likely high into the print, and it believes the selloff was mainly driven by concerns around higher LIFO expense in the quarter and choppy December demand trends.
Mizuho
Brett Linzey
maintain
$300 -> $305
2025-10-29
Reason
Mizuho
Brett Linzey
Price Target
$300 -> $305
2025-10-29
maintain
Reason
Mizuho analyst Brett Linzey raised the firm's price target on Applied Industrial Technologies to $305 from $300 and keeps an Outperform rating on the shares.
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BofA
Sabrina Abrams
Buy
maintain
$275 -> $290
2025-08-22
Reason
BofA
Sabrina Abrams
Price Target
$275 -> $290
2025-08-22
maintain
Buy
Reason
BofA analyst Sabrina Abrams raised the firm's price target on Applied Industrial Technologies to $290 from $275 and keeps a Buy rating on the shares after the company reported fiscal Q4 earnings that came in above the firm's estimate and consensus and gave FY26 EPS guidance that bracketed consensus. Looking past "a relatively uneventful quarter and noisy margin guide," the firm sees several reasons to stay constructive, the analyst tells investors.
Raymond James
Outperform -> Market Perform
downgrade
$250
2025-08-15
Reason
Raymond James
Price Target
$250
2025-08-15
downgrade
Outperform -> Market Perform
Reason
Raymond James downgraded Applied Industrial Technologies to Market Perform from Outperform without a price target. The firm cites valuation for the downgrade with the shares above its prior $250 price target. The market is now pricing in 4-%5% organic sales growth in \"virtual perpetuity\" at normal incremental margins and capital needs, the analyst tells investors in a research note.
About AIT
Applied Industrial Technologies, Inc. is a value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies. The Company’s segments include Service Center Based Distribution and Engineered Solutions. The Service Center Based Distribution segment operates through local service centers and distribution centers with a focus on providing products and services addressing the maintenance and repair of motion control infrastructure and production equipment. Its products include industrial bearings, motors, belting, drives, couplings, pumps, linear motion products, hydraulic and pneumatic components, filtration supplies, and hoses. The Engineered Solutions segment includes its operations that specialize in distributing, engineering, designing, integrating, and repairing hydraulic and pneumatic fluid power technologies, and engineered flow control products and services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
