Nordson stock rating reiterated at Buy by DA Davidson on strong demand

Published 22/08/2025, 13:50
Nordson stock rating reiterated at Buy by DA Davidson on strong demand

Investing.com - DA Davidson has reiterated its Buy rating and $285.00 price target on Nordson (NASDAQ:NDSN), citing healthy order entry and strong demand in several key markets. According to InvestingPro data, the company currently trades above its Fair Value, with analysts maintaining a consensus Buy recommendation.

The firm maintained its fiscal year 2025 estimates while slightly raising its fiscal year 2026 projections, attributing the increase to completed share repurchases and expected operating margin improvements in the company’s MFS segment following a pending divestiture. The company maintains impressive gross profit margins of 54.6% and operates with a moderate level of debt.

DA Davidson noted that demand remains strong in several Nordson markets, including precision agriculture, medical fluid components, packaging, electronics dispense, and nonwovens applications.

These positive trends are partially offset by continued weakness in the PPS segment and automotive markets, according to the research firm’s assessment.

The firm also highlighted Nordson’s sound balance sheet with 2.2x net leverage, ongoing share buybacks in the fiscal third quarter of 2025, and an expanded share repurchase authorization. The company has maintained dividend payments for 46 consecutive years, showcasing its commitment to shareholder returns.

In other recent news, Nordson Corporation reported impressive earnings for the third quarter of 2025, surpassing forecasts with an earnings per share (EPS) of $2.73 compared to the expected $2.63. The company also exceeded revenue projections, reporting $742 million against the anticipated $723.96 million. Following these results, Jefferies raised its price target for Nordson to $240.00, maintaining a Hold rating, while noting the company’s strong operating performance and achievable fourth-quarter guidance. KeyBanc reiterated its Overweight rating with a $250.00 price target, emphasizing the robust performance of Nordson’s Advanced Technology Systems (ATS) segment. DA Davidson also maintained a Buy rating with a $285.00 price target, citing sales and adjusted operating profit that outperformed expectations, with operational earnings beating estimates by $0.12 per share. These developments reflect positive sentiment and confidence among investors and analysts in Nordson’s strategic direction.

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