Oppenheimer raises Nordson stock rating, sets $260 target

On Friday, Oppenheimer analyst Christopher Glynn upgraded Nordson Corporation’s stock, trading on (NASDAQ:NDSN), from Perform to Outperform, setting a price target of $260.00. The upgrade comes as the company, currently valued at $11.9 billion, has shown impressive momentum with an 8% gain over the past week. Glynn’s optimism on the stock is based on the company’s recovery from cyclical headwinds that had previously hindered its growth. He noted that Nordson is poised for a positive organic growth trajectory after experiencing eight consecutive quarters of negative organic growth. According to InvestingPro data, three analysts have recently revised their earnings estimates upward for the upcoming period, supporting this positive outlook.

The upgrade reflects the analyst’s belief in the company’s emerging strength in various business sectors. According to Glynn, the Adhesive Dispensing Systems (ATS) cycle is showing signs of improvement, with precision agriculture growth leading the recovery in the broader sector. He highlighted double-digit growth in the second fiscal quarter and the potential for new products and strategic initiatives to further drive growth. The company’s strong financial position is evident in its impressive 54.8% gross profit margins and healthy current ratio of 2.56, indicating solid operational efficiency and liquidity.

Glynn also pointed out that the medical interventional segment is seeing a reduction in inventory destocking, with orders on the rise and a strong commercial pipeline supporting future growth. However, he mentioned that Industrial Coating and Polymer Processing units within the Industrial Precision Solutions (IPS) segment are still facing challenges, particularly from the automotive sector.

Despite these challenges, Glynn expects conditions to improve significantly in the first fiscal quarter of 2025. He also noted that the Industrial Coating segment is showing sequential improvement and that the transition to a new state-of-the-art facility is progressing well. This transition is anticipated to bolster the company’s performance and contribute to its positive outlook.

Glynn’s analysis suggests that Nordson is on a path to overcoming the obstacles that have affected its performance in recent years and is strategically positioned to capitalize on growth opportunities across its diverse business segments. The new price target of $260 represents a vote of confidence in Nordson’s potential for investors.

In other recent news, Nordson Corporation reported earnings for Q2 2025 that exceeded expectations, with an earnings per share (EPS) of $2.42 versus a forecast of $2.36 and revenue reaching $683 million. The company’s strong performance was driven by growth in the semiconductor markets and the successful integration of the Atrion acquisition, which has outperformed initial projections. Looking forward, Nordson has issued guidance for Q3 2025, projecting sales between $710 million and $750 million, with an adjusted EPS forecast of $2.55 to $2.75. Jefferies adjusted its price target for Nordson, lowering it from $340 to $230 while maintaining a Hold rating, citing strong performance but cautioning about trade policy uncertainties. Meanwhile, DA Davidson reaffirmed its Buy rating and a $285 price target, noting Nordson’s robust sales and operating profit in the second quarter, driven by improvements in the Adhesive Dispensing Systems segment. Both firms recognized Nordson’s solid order backlog, which provides visibility into the upcoming quarter, though the company remains cautious about full-year projections. Nordson’s management has highlighted ongoing tariff impacts and trade policy uncertainties as potential risks, while emphasizing their strategic focus on innovation and operational efficiencies.

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