Inovance’s July industrial-automation orders rose more than 30% year over year
Inovance Technology’s July industrial-automation orders rose more than 30% year over year, moderating slightly from 40% growth in the first half but remaining strong, according to a Goldman Sachs research note.
Inovance Technology’s July industrial-automation orders rose more than 30% year over year, moderating slightly from 40% growth in the first half but remaining strong, according to a Goldman Sachs research note.
Orders from traditional industries turned negative year over year, while advanced manufacturing continued to grow rapidly. Inovance’s market-share gains remained intact, and orders were flat month over month.
The note attributes Inovance’s outperformance to continued share expansion in industrial controls and incremental growth from its digitalization business. It says the company has continued to deliver above-market growth despite weaker manufacturing PMI conditions because of its competitive strength.
Goldman Sachs says the market may be placing too much weight on the impact of weaker macroeconomic PMI readings on the industrial-controls sector while overlooking Inovance’s share-gain alpha. The note also says the company’s industrial-controls expansion and digitalization potential may be undervalued and that its valuation is attractive.
Potential catalysts identified in the note are August industrial-automation order data, progress in winning new customers for the digitalization business, and the direction of manufacturing PMI in the second half of the year.
The note’s conclusion is that Inovance’s July industrial-automation orders remained above 30% growth, with share gains helping offset macroeconomic pressure and supporting a solid fundamental outlook.
Orders from traditional industries turned negative year over year, while advanced manufacturing continued to grow rapidly. Inovance’s market-share gains remained intact, and orders were flat month over month.
The note attributes Inovance’s outperformance to continued share expansion in industrial controls and incremental growth from its digitalization business. It says the company has continued to deliver above-market growth despite weaker manufacturing PMI conditions because of its competitive strength.
Goldman Sachs says the market may be placing too much weight on the impact of weaker macroeconomic PMI readings on the industrial-controls sector while overlooking Inovance’s share-gain alpha. The note also says the company’s industrial-controls expansion and digitalization potential may be undervalued and that its valuation is attractive.
Potential catalysts identified in the note are August industrial-automation order data, progress in winning new customers for the digitalization business, and the direction of manufacturing PMI in the second half of the year.
The note’s conclusion is that Inovance’s July industrial-automation orders remained above 30% growth, with share gains helping offset macroeconomic pressure and supporting a solid fundamental outlook.