Gold prices slid below $4,000/oz amid profit-taking on Gaza ceasefire
Investing.com - Roth/MKM initiated coverage on ESAB (NYSE:ESAB), currently trading at $116.42 with a market cap of $7.1 billion, with a Buy rating and a price target of $150.00 on Friday. According to InvestingPro analysis, the company maintains a GOOD financial health score with a robust gross margin of 37.75%.
The research firm believes ESAB shares were "unfairly punished" after falling 15% following second-quarter results, creating what it describes as an attractive entry point for investors. The stock has demonstrated resilience with a 22.46% return over the past year, though InvestingPro analysis suggests it’s currently trading near its Fair Value.
Roth/MKM notes that ESAB has greater exposure to emerging markets compared to its peers, with these markets growing at twice the rate of developed markets.
The firm highlights that ESAB is gaining market share in developing regions such as India and the Middle East, positioning it favorably against competitors.
Roth/MKM also points to ESAB’s growth potential from automation adoption and strong margin profile in its Gas Control business, factors that could enable the company to "outpace most industrial firms of its size."
In other recent news, ESAB Corp reported strong financial results for the second quarter of 2025, with earnings per share (EPS) of $1.36, surpassing the forecast of $1.34. The company’s revenue reached $716 million, exceeding expectations of $672.49 million. Despite these positive results, ESAB’s stock experienced a decline in premarket trading. Additionally, Loop Capital upgraded ESAB’s stock rating from Hold to Buy, raising its price target to $140.00. The firm highlighted the recent pullback in ESAB shares as an opportunity for investors, citing a robust growth outlook. Stifel also upgraded ESAB from Hold to Buy, maintaining a price target of $141.00. This upgrade followed a 17.2% drop in ESAB shares, even as the company slightly raised its guidance. These developments reflect analysts’ confidence in ESAB’s long-term performance despite short-term market fluctuations.
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