DA Davidson maintains Nordson stock Buy rating, $285 target

Published 20/02/2025, 17:06
DA Davidson maintains Nordson stock Buy rating, $285 target

Thursday, Nordson Corporation (NASDAQ:NDSN), a $12.39 billion industrial company with impressive gross profit margins of 55.15%, received a reaffirmed Buy rating and a steady $285.00 price target from DA Davidson, following the company’s release of its first-quarter financial results for fiscal year 2025. Nordson reported sales and adjusted operating profit that fell short of DA Davidson’s expectations. The shortfall in operational performance, attributed to weaker organic sales across all segments, resulted in a $0.07 discrepancy from the firm’s estimated earnings. According to InvestingPro data, the company maintains strong financial fundamentals with a healthy current ratio of 2.53.

For the second quarter of fiscal 2025, Nordson’s revenue and earnings per share guidance were in line with DA Davidson’s model at the higher end but fell short at the midpoint of the company’s forecast. Despite these results, Nordson’s inbound order activity showed signs of recovery, contributing to a 15% quarter-over-quarter increase in backlog, amounting to an additional $85 million. Notably, InvestingPro analysis reveals that Nordson has maintained dividend payments for 46 consecutive years, demonstrating consistent shareholder returns despite market fluctuations.

DA Davidson’s analyst noted that while Nordson did not update its annual guidance in the earnings release, there is an expectation that consensus estimates may gravitate toward the lower end of Nordson’s previously stated range. This observation comes amidst the backdrop of the company’s recent performance and the current economic environment.

Investors and stakeholders in Nordson Corporation will be closely monitoring the company’s progress as it navigates through the fiscal year, with particular attention to its ability to meet or adjust guidance in response to market conditions and operational performance.

In other recent news, Nordson Corporation disclosed its Q1 2025 financial results, reporting a slight miss on both earnings per share (EPS) and revenue. The company posted an EPS of $2.06, falling short of the $2.09 forecast, and revenue of $615 million, below the expected $639.4 million. Despite these misses, Nordson’s stock experienced a rise, indicating investor confidence in the company’s strategic initiatives. Management expressed optimism about future growth, with plans to enhance performance through product innovations and strategic acquisitions. Additionally, the company has set its Q2 2025 sales guidance between $650 million and $690 million, with an adjusted EPS range of $2.30 to $2.50. Analysts from firms such as D.A. Davidson and BNP Paribas (OTC:BNPQY) engaged with Nordson’s executives, inquiring about the performance of recent acquisitions and segment realignments. The company continues to face challenges, including soft demand in electronics and industrial markets, as well as foreign exchange headwinds. However, Nordson remains focused on leveraging its strategic initiatives to drive long-term growth.

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

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