Graco stock price target held at $85 by DA Davidson on mixed Q3 results

Investing.com - DA Davidson has maintained its Neutral rating and $85.00 price target on Graco Inc. (NYSE:GGG) following the company’s third-quarter earnings report. According to InvestingPro data, the company currently trades near its Fair Value, with a P/E ratio of 29x and impressive gross profit margins of 52.2%.

The industrial pump manufacturer reported quarterly sales below analyst expectations, while adjusted operating profit and earnings per share matched forecasts. Core sales contracted 2% during the period, according to DA Davidson’s analysis. Despite the sales contraction, the company maintains strong financial health with a robust current ratio of 3.55x.

The sales decline was primarily driven by low-single-digit decreases in Graco’s Contractor segment, particularly in North America, and in its Industrial division. These declines were partially offset by a low-single-digit increase in the company’s Expansion Markets segment.

Graco has maintained its low-single-digit organic sales growth outlook for 2025, supported by recent tariff-driven price increases taking effect and easier year-over-year comparisons ahead. The company reported stable order rates across its business segments.

DA Davidson noted that Graco’s balance sheet remains strong with over $580 million in net cash, following the repurchase of 4.4 million shares year-to-date.

In other recent news, Graco Inc . announced its Q2 2025 earnings, which fell short of analysts’ expectations. The company reported an earnings per share (EPS) of $0.75, missing the forecasted $0.79. Additionally, Graco Inc.’s revenue came in at $572 million, below the anticipated $590.74 million. These recent developments highlight the company’s performance challenges during the quarter. Despite the earnings miss, there have been no recent upgrades or downgrades reported by analyst firms. Investors might be closely monitoring these financial results as they assess the company’s future prospects. The earnings release underscores the importance of meeting market expectations to maintain investor confidence.

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