Analyst Ratings February 23, 2026

D.A. Davidson Holds Neutral on Columbus McKinnon After Earnings Beat; Pricing and Estimates Adjusted

Firm keeps a Neutral stance while revising forecasts tied to the Kito Crosby acquisition and a planned U.S. hoist divestiture

By Marcus Reed CMCO
D.A. Davidson Holds Neutral on Columbus McKinnon After Earnings Beat; Pricing and Estimates Adjusted
CMCO

D.A. Davidson reiterated a Neutral rating on Columbus McKinnon, flagging a price target in firm commentary while updating its estimates after additional review of the Kito Crosby acquisition and an expected divestiture of the company's U.S. power chain hoist business. The firm adjusted operating expense assumptions to exclude certain nonrecurring charges and one-time costs. Columbus McKinnon recently reported fiscal third-quarter 2026 results that beat consensus on both adjusted EPS and revenue.

Key Points

  • D.A. Davidson reiterated a Neutral rating on Columbus McKinnon and revised its estimates after further due diligence on the Kito Crosby acquisition and a pending divestiture of the U.S. power chain hoist business - markets impacted include industrials and equity research coverage.
  • The firm adjusted operating expense assumptions to exclude nonrecurring charges and one-time costs, moving its estimates higher versus the last update but not back to the pre-quarter model levels - this affects earnings forecasts and investor valuation models.
  • Columbus McKinnon reported fiscal third-quarter 2026 adjusted EPS of $0.62 and revenue of $258.7 million, both above consensus estimates, while trading at a high P/E of 88.07.

D.A. Davidson has reiterated a Neutral rating on Columbus McKinnon shares and included a price target in its recent coverage note. The firm said it raised certain model inputs after conducting further due diligence on the recently closed Kito Crosby acquisition and the pending sale of the company’s U.S. power chain hoist business.

The update to D.A. Davidson’s forecasts centers on operating expense assumptions. The firm said it revised projections to exclude nonrecurring profit and loss items tied to Kito Crosby along with other one-time costs that Columbus McKinnon is expected to remove from reported results on a non-GAAP basis. Those adjusted assumptions drove an upward move in the firm’s estimates compared with its previous update, though D.A. Davidson noted its estimates remain below the levels used in the model before Columbus McKinnon released third-quarter fiscal 2026 results earlier this month.

Analysts highlighted valuation metrics alongside the estimate changes. According to InvestingPro analysis, the company appears undervalued at current market levels based on a Fair Value assessment, even as the stock trades at a relatively high earnings multiple - the reported P/E ratio stands at 88.07.

The company’s recent quarterly results were stronger than expected. Columbus McKinnon posted adjusted earnings per share of $0.62 for fiscal third-quarter 2026, beating the consensus forecast of $0.58. Revenue came in at $258.7 million, above the $242.35 million analysts had anticipated. Management’s preliminary figures for the quarter had hinted at stronger performance, and the final reported numbers landed toward the high end of that range.

Within the firm’s coverage note the Neutral rating was reiterated alongside a price target. The commentary includes references to a $20.00 target in one section and, elsewhere in the reporting, a maintained $15.00 price target is also cited. The firm continues to cover Columbus McKinnon as part of its broader research universe, noting the stock among the U.S. equities encompassed by its Pro Research Reports.

Investors will also see forecast-level movement in the firm’s models: D.A. Davidson’s updated projections are higher than its prior post-close update, reflecting the exclusion of identified one-time charges, but they do not fully return to the pre-release model assumptions.

For market participants focused on valuation and near-term earnings, the combination of a reported earnings beat, upwardly revised estimates that still trail earlier internal models, and a high P/E multiple creates a mixed picture. The firm’s Neutral rating signals neither a buy nor a sell bias at the current market price, which was trading below one stated target level.


Contextual note: The firm incorporated revised non-GAAP operating expense assumptions into its model after additional diligence on the Kito Crosby acquisition and an anticipated divestiture of the U.S. power chain hoist business.

Risks

  • Uncertainty tied to the pending divestiture of the U.S. power chain hoist business could affect near-term financial results and model assumptions - this risk is relevant to industrials and corporate restructuring outcomes.
  • Reliance on excluding nonrecurring charges and other one-time items from operating expense assumptions introduces execution and reporting risk if adjustments differ from expectations - impacts investor assessment and non-GAAP reporting practices.
  • Valuation risk remains with the stock trading at a high earnings multiple (P/E of 88.07), which could expose investors to downside if earnings do not grow as forecasted - this risk pertains to equity investors and valuation-sensitive funds.

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