Benchmark maintains Buy rating on Belden stock with $120 target

Published 05/05/2025, 16:00
Benchmark maintains Buy rating on Belden stock with $120 target

Monday, Benchmark analysts reiterated a Buy rating and a $120.00 price target on Belden Inc . (NYSE:BDC), following the company’s strong first quarter performance. Currently trading at $105.16, the stock has shown impressive momentum with an 18.96% return over the past year. According to InvestingPro data, analyst targets range from $120 to $145, suggesting potential upside. Belden reported sustained demand and improving order trends, even amid increasing tariff uncertainties. The firm’s book-to-bill ratio rose to 1.05, compared to 1.03 year-over-year (YoY), with an 18% increase in orders YoY and a modest sequential improvement.

The robust demand was particularly evident in the Americas region, which witnessed a 14% increase compared to the first quarter of 2024. With a healthy revenue growth of 5.99% and a strong current ratio of 1.93, the company maintains solid financial footing. Despite the company’s guidance being slightly below consensus on the top line, analysts perceive this as a conservative estimate in light of the dynamic trade policy environment and delays in investment decisions. Belden’s outlook for the rest of the year remains largely unchanged, with 2025 still anticipated to show strong annualized growth.

Belden’s management has maintained a cautious stance regarding the achievement of their $8 earnings per share (EPS) goal for the current year, citing limited visibility into the second half of the year’s macroeconomic conditions. Nevertheless, the company’s underlying demand indicators are positive, with order momentum, leaner inventories, and increased customer activity related to reshoring contributing to a cautiously optimistic outlook.

Analysts at Benchmark continue to support Belden’s solutions-centric strategy and its exposure to domestic manufacturing tailwinds. They anticipate that the company’s operating leverage will accelerate as its strategic shift continues to gain traction. InvestingPro analysis reveals two key strengths: the company has maintained dividend payments for 22 consecutive years and demonstrates strong financial health with an overall score of "GOOD." For investors seeking deeper insights, InvestingPro offers 5 additional exclusive tips and a comprehensive Pro Research Report, available among 1,400+ top stocks covered by the platform.

In other recent news, Belden Inc. reported financial results for the first quarter of 2025 that surpassed analysts’ expectations. The company posted earnings per share of $1.60, exceeding the projected $1.49, and achieved revenue of $625 million, surpassing the anticipated $614.68 million. This performance marks a 17% year-over-year revenue growth and a 29% increase in earnings per share. Belden’s strong order growth, with an 18% increase compared to the previous year, reflects healthy demand across its segments. Analysts from Truist Securities and Benchmark noted the positive impact of Belden’s strategic positioning in reshoring and IT/OT convergence. The company provided guidance for the second quarter of 2025, forecasting revenue between $645 million and $660 million and an adjusted EPS range of $1.67 to $1.77. Belden remains focused on expanding its IT/OT convergence solutions and investing in fiber and broadband technologies. CEO Ashish Chand emphasized the company’s strategic positioning to benefit from global trends like reindustrialization and automation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.