Applied Industrial Technologies initiated with an Outperform at Mizuho

Mizuho analyst Brett Linzey initiated coverage of Applied Industrial Technologies (AIT) with an Outperform rating and $285 price target While cyclical pressure is “briefly interrupting secular gains,” there are “massive levels of investment taking place in AIT’s backyard,” predominately North America, says the analyst, who contemplates a return to M&A given the company’s nearly unlevered balance sheet and continued operating gains. 80% of sales are generated from number one or two market positions, yet “still ripe for continued consolidation,” the analyst tells investors.