On Wednesday, DA Davidson initiated coverage on MSA Safety (NYSE:MSA), a company specializing in occupational safety equipment, with a positive outlook. The firm issued a Buy rating for MSA Safety's stock, accompanied by a price target of $195.00, signaling confidence in the company's market position and growth prospects. According to InvestingPro data, analyst targets range from $195 to $212.50, with the stock currently trading near its 52-week low, suggesting potential upside opportunity.
The analyst highlighted MSA Safety's global leadership in providing equipment that protects workers across various industries, including firefighters and construction workers. The initiation of coverage also included the addition of MSA Safety to DA Davidson's Best-of-Breed Bison list, which features companies that exhibit top-tier attributes within their sectors. InvestingPro data supports this position, showing strong financial health with a current ratio of 2.68 and moderate debt levels, while maintaining a robust gross profit margin of 48%.
According to the analyst's comments, there is an increased focus on safety within companies, which is expected to support MSA Safety's business. Additionally, there is an anticipation of growing budgets for fire departments in the public sector, which could further benefit the company's sales.
Despite expectations of slightly below-normal growth rates for the next year, MSA Safety is recognized for its consistent performance. The firm is projected to achieve an 8%-10% earnings compound annual growth rate (CAGR) through 2028. The analyst's remarks underscore the belief that MSA Safety's role as a stable "compounder" in the industry remains secure and that the company should be considered a core holding in the Industrial sector.
In other recent news, MSA Safety has been the subject of several analyst notes. Jefferies initiated coverage on the company with a Hold rating, citing MSA Safety's robust gross margins and strong financial health. B.Riley Financial also initiated coverage, assigning a Buy rating and praising the company's innovative approach and strong market presence. Both firms noted the company's strong earnings and revenue figures.
MSA Safety recently reported mixed Q3 results, with a slight 3% decrease in net sales to $433 million, offset by a 3% increase in adjusted earnings per share to $1.83. Despite this, the company maintains a positive order momentum and a growing backlog. Furthermore, MSA Safety declared Q4 dividends for both common and preferred stock, with shareholders set to receive $0.51 per share on common stock and $0.5625 per share on preferred stock.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.