The firm lowered forecasts due to weaker operational outlook and higher interest expenses post-KC acquisition.
DA Davidson reduced Columbus McKinnon Corporation’s (NASDAQ:CMCO) price target to $17 from $20 while keeping a Neutral rating. The adjustment reflects revised FY27/FY28 projections, accounting for a softer operational outlook and increased interest costs following the KC acquisition.
The firm noted order growth in short-cycle and project activity within CMCO’s core business but adopted a wait-and-see stance on leverage and collaboration outcomes. Management had previously expressed optimism about the Kito Crosby deal’s contributions and underlying U.S. demand.
CMCO reported a 77.3% year-over-year revenue increase in its latest quarter, driven by motion solutions for materials handling. The company remains focused on sales growth, cash flow generation, and margin expansion.