Stifel reiterates buy rating on ESAB stock with $126 price target

Published 13/06/2025, 13:24
Stifel reiterates buy rating on ESAB stock with $126 price target

Stifel maintained its Buy rating on ESAB (NYSE:ESAB) with a price target of $126.00, according to a research note released Thursday. The stock, currently trading at $125.12, has demonstrated strong momentum with a 30.21% return over the past year, according to InvestingPro data.

The investment firm’s decision came after Stifel representatives met with ESAB CEO Shyam Kambeyanda and Vice President of Investor Relations Mark Barbalato in San Francisco this week.

Following these investor meetings, Stifel expressed "increased confidence in the demand outlook, particularly internationally," for the welding and cutting equipment manufacturer.

The research note also highlighted "internal improvement opportunities" at ESAB that were discussed during the San Francisco meetings.

Stifel additionally noted that the discussions provided "a clearer picture of the M&A strategy" for ESAB, though specific acquisition targets or timelines were not disclosed in the report.

In other recent news, ESAB Corporation reported its financial results for Q1 2025, exceeding analysts’ expectations. The company achieved an earnings per share of $1.25, surpassing the forecasted $1.20, and generated revenue of $678.14 million, which was higher than the anticipated $632.75 million. These results reflect a robust performance, with a record adjusted EBITDA margin of 19.8%. Additionally, ESAB’s acquisition of Bavaria contributed positively to revenue growth, bolstered by favorable foreign exchange movements. In corporate governance developments, ESAB announced the approval of its Amended and Restated 2022 Omnibus Incentive Plan, which introduces several changes, including increased grant limits for non-employee directors. During the same meeting, stockholders elected four Class III directors and ratified the appointment of Ernst & Young LLP as the company’s independent registered public accounting firm. The company also raised its full-year adjusted EBITDA guidance to $520-$530 million, indicating a positive outlook for the remainder of the year.

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