Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com - Stifel has increased its price target on ESAB (NYSE:ESAB) to $141.00 from $126.00 while maintaining a Hold rating on the stock. The company, currently valued at $7.88 billion, trades at a P/E ratio of 26 and according to InvestingPro analysis appears to be trading above its Fair Value.
The firm cited expected strength in international markets, particularly in India and the Middle East, which should offset anticipated modest softness in the Americas region that represents approximately 25% of ESAB’s revenue.
Stifel noted management’s bullish outlook for Europe as the continent begins long-term infrastructure and defense investment projects to reduce dependence on the United States, though the firm will be monitoring for concrete signs of this investment materializing in the market.
Currency factors are expected to benefit ESAB, with Stifel estimating that the weaker dollar would add approximately 1% to revenue growth for 2025 compared to previous models, given that the company generates only 25% of its revenue in the United States.
Based on these factors, Stifel anticipates ESAB will raise its guidance in the near future, supporting the higher price target despite maintaining the Hold rating. The company’s next earnings report is scheduled for August 6, 2025.
In other recent news, ESAB Corporation announced a definitive agreement to acquire EWM GmbH, a German manufacturer of heavy industrial welding equipment, for approximately €275 million. This acquisition is expected to close in the second half of 2025, pending regulatory approvals, and will be funded through cash on hand. EWM is projected to generate around €120 million in revenue in 2025, with ESAB anticipating that the acquisition will be accretive to adjusted earnings per share in its first year. Loop Capital maintained its Hold rating on ESAB, citing the acquisition’s potential to modestly boost earnings per share and enhance ESAB’s presence in the German heavy fabrication market. Stifel also reiterated its Buy rating on ESAB, expressing increased confidence in the company’s international demand outlook following meetings with ESAB’s executives. Additionally, ESAB approved its Amended and Restated 2022 Omnibus Incentive Plan during its Annual Meeting of Stockholders. This plan introduces key changes, such as extending the termination date and updating recoupment provisions, though it does not increase the number of shares authorized for issuance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.