Barclays initiates coverage on Ametek stock with Equalweight rating

Published 10/09/2025, 08:30
Barclays initiates coverage on Ametek stock with Equalweight rating

Investing.com - Barclays initiated coverage on Ametek Inc. (NYSE:AME) with an Equalweight rating and a $200.00 price target on Wednesday. According to InvestingPro data, the stock is currently trading near its Fair Value, with analyst targets ranging from $168 to $225.

The research firm highlighted Ametek as one of the highest quality companies in its coverage universe, specifically noting the company’s strong operating and free cash flow margins compared to peers. This assessment is supported by the company’s impressive 35.7% gross profit margin and robust free cash flow yield of 4%.

Barclays pointed to Ametek’s active yet disciplined merger and acquisition strategy as a key factor in maintaining double-digit percentage returns, unlike most "M&A compounder" peers, while delivering consistent double-digit earnings per share growth that distinguishes it from typical short-cycle industrial companies.

The firm attributed Ametek’s consistently strong performance to its decentralized Growth Model and disciplined operating culture, adding that the company appears positioned for a cyclical recovery into 2026 with potential for high operating leverage.

Despite these positive attributes, Barclays indicated that these strengths are already well factored into current market expectations, with consensus estimates already projecting mid-single-digit percentage organic sales growth in 2026 following flat to declining organic sales through 2024-2025.

In other recent news, AMETEK Inc. reported robust financial results for the second quarter of 2025, exceeding analyst expectations. The company posted an earnings per share of $1.78, surpassing the forecasted $1.69, and reported revenue of $1.78 billion, outpacing the anticipated $1.73 billion. In another development, S&P Global Ratings has affirmed AMETEK’s ’BBB+’ credit rating while revising its outlook to positive from stable, highlighting the company’s strong credit metrics and growth prospects. The rating agency expects continued revenue growth driven by factors such as higher pricing and new product development.

Additionally, TD Cowen upgraded AMETEK’s stock rating from Sell to Hold, citing improving conditions that had previously been negative. The firm increased its price target to $180.00 from $158.00. Furthermore, AMETEK’s Board of Directors declared a regular quarterly dividend of $0.31 per share for the third quarter, payable on September 30, 2025, to shareholders of record as of September 15, 2025. These developments reflect a positive trajectory for AMETEK, with analysts and rating agencies recognizing the company’s strong performance and potential.

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