Stifel analysts downgraded DMC Global (NASDAQ:BOOM) from Buy to Hold and lowered the price target from $16 to $8, citing unclear prospects for near-term upside and challenges in the company’s outlook.

The downgrade reflects several concerns, including the retirement of CEO Michael Kuta and recent changes to the company’s Board, which have introduced uncertainty about future performance. Additionally, lackluster demand in key end markets has further clouded expectations.

Another potential headwind is the likelihood of the minority owner of Arcadia exercising a put/call option, which could dilute shareholder value.

While there may still be unrealized long-term potential in DMC Global shares, the analysts expressed doubts about significant gains in the coming quarters given the current challenges.