On Friday, Benchmark analyst Reuben Garner revised the stock price target for Steelcase (NYSE:SCS), a leader in the office furniture industry, to $16.00 from the previous $18.00, while reaffirming a Buy rating on the company's shares. The adjustment follows the company's third-quarter financial results, which were released earlier this week.
Steelcase reported strong third-quarter results for fiscal year 2025, with EBITDA and EPS exceeding consensus estimates, despite revenues aligning with expectations. However, a temporary slowdown in order trends during the quarter led to a conservative guidance for the fourth quarter's top line, with the projected EPS range slightly below the consensus.
Despite the modest fourth-quarter outlook, Benchmark's Garner has increased the earnings per share (EPS) estimate for the full fiscal year 2025 to $1.05, up five cents. However, the forecast for fiscal year 2026 has been reduced by the same amount, to $1.10.
Garner's analysis suggests that, although there is optimism for an imminent uptick in demand, the anticipated costs and challenges associated with an upcoming Enterprise Resource Planning (ERP) system implementation have necessitated a slight reduction in the price target for Steelcase shares. The new target reflects a balance between the near-term headwinds and the potential for future growth.
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