11:17 AM EDT, 06/05/2026 (MT Newswires) -- Applied Industrial Technologies ( AIT ) remains a top pick for investors looking to benefit from improving short and medium-cycle industrial demand, Oppenheimer said in a Friday note.

The report said May's ISM Manufacturing Index corroborates its multi-faceted inflection profile in fiscal Q3.

"We are positive on the FY4Q/June quarter setup into FY27 guidance," the report said.

The Engineered Solutions segment built backlog in recent quarters, with accelerating book-to-bill ratio in the past two quarters, the note said. The firm also observed shortening sales conversion cycles, particularly for Automation.

The Service Center segment's organic sales grew 4.2% in fiscal Q3, while March and April orders hit high single digits, it said.

"AIT's clean financials and execution, plus track record of

astute expectations management, pair well with strong structural

macro foundations for served markets," the note said.

Oppenheimer kept its outperform rating and $350 price target.

Price: 314.72, Change: +1.04, Percent Change: +0.33