Allied Motion Technologies (AMOT), mcap=$504m, price $32.50 vs $24.30

– Producer of motion control systems.
– Recently made a few acquisitions that add 15% to base revenues.
– Trades below the valuation of closest peer.
– Potential target for a larger competitor.
– Mission-critical products that represent only a small cost portion for customers.

– Set to generate $500 revenues, $70m EBITDA, and $1.8 EPS in FY23 with EBITDA margins improving from 12.3% to 15%.
– Trade at FY23 multiples of 13.5x EPS, 7.4x EBITDA, and 12x FCF.
– The closest peer $AME is at 15x EBITA and 20x EPS.

Exp. gain: +30% to $31.5/share in one year.

Full $AMOT write-up (free guest account required):

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