Lindsay (LNN) Stock Forecast & Price Target

Lindsay Corp has demonstrated a resilient performance in its irrigation segment, with North American irrigation revenues increasing by 1.2% year-over-year to $69.1 million, supported by stable unit sales volumes and slightly rising average selling prices. Internationally, irrigation revenue surged by 60.2% year-over-year, largely due to significant projects in the MENA region and growing sales in South America, indicating strong demand driven by food security and water resource conservation initiatives. Additionally, the infrastructure segment recorded a 5.6% year-over-year growth, primarily led by increased sales of road safety products, highlighting the company's diversified revenue streams and ongoing operational momentum.

Lindsay Corp faces a negative outlook due to weak grain prices and negative cash flows in the agricultural sector, which have diminished banker confidence and could negatively impact demand for its irrigation products. Additionally, the company reported lower operating income and margins primarily due to an unfavorable mix of Road Zipper™ revenues compared to the previous year. Further risks to Lindsay's financial performance include potential challenges in passing through increased material costs and lower-than-expected end market demand, which could result in reduced margins.