DA Davidson reiterates Neutral rating on Graco stock amid mixed market trends

Published 28/07/2025, 14:44
DA Davidson reiterates Neutral rating on Graco stock amid mixed market trends

Investing.com - DA Davidson has reiterated its Neutral rating and $85.00 price target on Graco Inc . (NYSE:GGG), citing mixed end market conditions across the company’s three reportable segments. According to InvestingPro data, analyst targets range from $79 to $100, with the stock currently trading near Fair Value levels.

The research firm noted that despite "notable weakness" in Graco’s North American construction-facing businesses, overall incoming order rates appear supportive of low-single-digit organic growth for the company in 2025.

Forthcoming tariff-related pricing actions are also expected to contribute to Graco’s growth prospects in the coming year, according to DA Davidson’s analysis.

The firm highlighted Graco’s "exceptionally strong" balance sheet, which includes more than $0.5 billion in net cash, providing financial flexibility for share repurchases, internal investments, and mergers and acquisitions.

DA Davidson specifically mentioned Graco’s recently announced acquisition of Color Service as part of the company’s M&A activity supported by its strong financial position.

In other recent news, Graco Inc. has announced a definitive agreement to acquire Italian dosing systems firm Color Service for €63 million, subject to customary adjustments. Color Service, specializing in gravimetric dosing technology, generated €34 million in revenue in 2024. Wolfe Research has reiterated its outperform rating on Graco, with analyst Nigel Coe maintaining a positive outlook for the company’s performance in its industrial and contractor segments. Additionally, Graco declared a quarterly dividend of $0.275 per share, payable on August 6, 2025, highlighting its commitment to returning value to shareholders.

In another development, Graco plans to consolidate its Minnesota operations by relocating its Riverside Minneapolis operations and corporate teams to expanding campuses in the northwest metro area. This move follows a gradual transition of teams to cities like Rogers, Dayton, and Anoka, where Graco’s manufacturing facilities and office spaces are located. Furthermore, during its Annual Meeting of Shareholders, Graco announced the election of three directors to serve three-year terms. Eric P. Etchart, Jody H. Feragen, and J. Kevin Gilligan were elected with varying levels of support from shareholders.

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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