Albany International Faces Growth Challenges Amid Program Execution Issues and Market Pressures

Analyst Ronald Epstein of Bank of America Securities reiterated a Sell rating on Albany International (AIN – Research Report), with a price target of $75.00.

Ronald Epstein has given his Sell rating due to a combination of factors impacting Albany International’s growth prospects. The company faces ongoing challenges with program execution, particularly with its Albany Engineered Composites (AEC) division, which has been hit by significant charges on key programs like CH-53K and Gulfstream. These charges highlight potential margin pressures that could persist into the coming quarters.
Additionally, external factors such as tariff risks and market softness are affecting the Machine Clothing (MC) segment, with the Heimbach acquisition failing to deliver the expected growth benefits. The excess inventory of fan blades and the impact of a fire at the SPS plant further complicate the outlook. Consequently, Epstein reiterates an Underperform rating and adjusts the price objective to $75, reflecting these ongoing challenges and uncertainties.