EPAC

ETF Analyst Target Prices: The iShares S&P Small-Cap 600 Growth ETF (IJT) has an implied analyst target price of $155.88, indicating a potential upside of 14.70% from its current trading price of $135.91.

Individual Holdings Analysis: Notable underlying holdings such as Enerpac Tool Group Corp, Cars.com Inc, and Helmerich & Payne, Inc. show significant upside potential based on analyst targets, raising questions about the validity of these optimistic projections.

Revenue Growth and Financial Performance: Enerpac Tool Group Corp reported a 6% year-over-year revenue increase to $159 million in Q3 2025, with notable growth in the Cortland Biomedical segment at 19%. However, gross profit margin declined to 50.4%, and the company anticipates delivering towards the lower half of its fiscal earnings guidance due to macroeconomic challenges.

Restructuring and Market Response: The company incurred a $5.9 million restructuring charge primarily for severance, while maintaining a strong balance sheet with a net debt to adjusted EBITDA ratio of 0.4. Despite some customer caution regarding large capital investments due to uncertainty, there has been no significant project cancellations, and pricing actions have been accepted by channel partners to counter inflationary impacts from tariffs.

Financial Performance: Enerpac Tool Group reported a 5.5% increase in Q3 net sales to $159 million, with adjusted net earnings of $27.7 million and an operating profit margin of 20.0%. The company maintained its fiscal 2025 sales guidance, expecting total sales between $610 million and $625 million.

Corporate Developments: The company relocated its headquarters to downtown Milwaukee to foster collaboration and innovation, while also returning approximately $14 million to shareholders through share repurchases amidst ongoing economic uncertainties.