Shares of Atkore Inc ATKR is poised to benefit from "electrification megatrends," according to analyst Justin Clare.

The company could return capital to shareholders with strong free cash flow generation, according to Roth Capital Partners.

Clare initiated coverage of Atkore with a Buy rating and a price target of $100.

The Atkore Thesis: The company has a broad product offering plus a nationwide manufacturing and distribution network, Clare wrote.

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Atkore's offering is differentiated due to its broad product portfolio and national footprint, the analyst stated. The company follows a "one order, one delivery, one invoice" strategy.

This "reduces logistics costs and simplifies purchasing, allowing for order consolidation and lower freight expenses," while its national footprint further allows for "faster delivery and working capital efficiency," he added.

Atkore is poised to benefit from rising demand for renewable energy, grid hardening, digital infrastructure, and electrification, Clare stated.

"Moreover, we expect continued market growth as the Dodge Construction Network forecasts 6% YoY growth in non-residential construction starts in 2025, and Fed rate cuts could boost demand," he further wrote.

Price Action: Shares of Atkore had lost almost 40% year to date, and declined by 0.41% to $84.26 at last check on Tuesday.

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