AZZ Should I Buy

As previously reported, Wells Fargo analyst Timna Tanners downgraded AZZ Inc. to Equal Weight from Overweight with a price target of $132, up from $127. The firm says its downgrade reflects strong recent share price performance despite lackluster 2027 guidance, more muted margin growth implied, and increasing paint competition from North America steel mills. Shares have risen over 29% over the past three months, outperforming the S&P, up 1%. Unlike steels, AZZ should not benefit from higher steel prices or take meaningful share from imports under Section 232 tariffs. Recent 2027 guidance was in line with expectations, and Wells remains cautious on its key end market, nonresidential construction, as starts in sq ft terms have been under pressure.