Skellerup Holdings' (NZE:SKL) upgrade to its fiscal 2026 outlook continues "a strong execution track record" of achieving or surpassing opening guidance over the past decade while navigating multiple macro and industry headwinds, Jarden said in a Tuesday note.
The company raised its net profit after tax guidance to between NZ$64 million and NZ$65 million from a previous range of NZ$57 million to NZ$62 million, citing stronger demand in the US, its largest end market.
Skellerup captured robust fiscal fourth-quarter demand in the US across multiple applications in potable water, wastewater, dairy, and marine, the investment firm said.
Jarden expects the company to issue a fiscal 2027 net profit after tax opening guidance range of NZ$65 million to NZ$70 million. The equity research firm raised its fiscal 2026 through fiscal 2028 earnings per share forecasts for Skellerup following the company's latest trading update.
Over the past 10 years, Skellerup has "transitioned from an indebted cyclical manufacturer to a design-led, capital-light and diversified critical components supplier with a track record of growth and execution," Jarden said.
It lowered its rating on Skellerup to neutral from overweight, saying that a continuation of the company's growth profile is captured in revised estimates and better reflected in its current share price. It also raised its target price on the company to NZ$6.70 from NZ$5.90.
Shares of Skellerup were down nearly 2% in recent Wednesday trade.