Tennant Company: Short-Term Issues Will Give Way To Attractive Upside

Tennant Company faces short-term profitability setbacks but maintains a soft ‘buy’ rating due to relative valuation and growth prospects. TNC's revenue grew modestly despite supply chain and ERP issues, but net income and EBITDA declined sharply, prompting lower profit guidance. Management remains focused on robotics and automation, targeting robotics revenue growth from $85M to $250M by 2028 and ongoing product launches. Valuation remains attractive versus peers, with potential upside if multiples revert, and management targets 3–5% annual organic sales growth.