Baird Boosts Toro (TTC) Target on Improved Free Cash Flow Outlook

The Toro Company (NYSE:TTC) is included among the 14 Best Mid Cap Dividend Aristocrat Stocks to Buy Now.

On December 18, Baird raised its price target on The Toro Company (NYSE:TTC) to $86 from $84 and reiterated a Neutral rating. The firm said it updated its forecasts after Toro’s Q4 results, which pointed to stronger free cash flow and signs that expectations may be starting to bottom.

Earlier in the month, on December 8, Toro announced it had completed its acquisition of Tornado Infrastructure Equipment Ltd. (TGH), a Calgary-based manufacturer known for hydrovac excavation equipment used in underground construction, power transmission, and energy-related work.

Toro said Tornado’s machines are designed for safe excavation in dense urban environments and around critical infrastructure, making the business a strong fit within Toro’s expanding construction equipment portfolio. The deal also positions Toro to benefit from rising demand in vacuum excavation. With Tornado added alongside brands like Ditch Witch and other underground construction products, Toro believes it can widen its reach and strengthen its position in the industry.

The Toro Company (NYSE:TTC) paid C$279 million for the acquisition, financing it with debt through existing credit facilities and other arrangements. The company expects the transaction to be slightly accretive to adjusted EPS in the first year, with a larger contribution in later years. Toro also reiterated its expectation for about $3 million in annual run-rate cost synergies over the next three years, mainly from purchasing and manufacturing efficiencies. Beyond cost savings, it also sees potential upside from revenue synergies and working capital improvements over time.

The Toro Company (NYSE:TTC) is a global provider of outdoor environment solutions, spanning turf and landscape maintenance, snow and ice equipment, underground utility construction, rental and specialty construction products, as well as irrigation and outdoor lighting.

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