Stifel resumes MSA Safety stock coverage with Hold rating

Published 16/07/2025, 10:20
Stifel resumes MSA Safety stock coverage with Hold rating

Investing.com - Stifel has resumed coverage of MSA Safety (NYSE:MSA) with a Hold rating and a price target of $182.00, according to a research note released Wednesday. The target aligns with the broader analyst consensus, with price targets ranging from $165 to $195. According to InvestingPro data, the stock currently trades at a P/E ratio of 23.6x, suggesting a premium valuation relative to its near-term earnings growth.

The research firm cited a positive long-term outlook for MSA Safety, highlighting the upcoming Self-Contained Breathing Apparatus (SCBA) replacement cycle and opportunities to grow recurring software and subscription revenue. The company’s strong financial foundation is evidenced by its 53-year streak of dividend payments, with 11 consecutive years of dividend increases.

Stifel also noted that rising safety standards provide pricing and share gain opportunities for MSA Safety, along with potential for valuation re-rating given the company’s discount to peers.

Despite the favorable long-term view, Stifel expects near-term headwinds from difficult SCBA comparisons, tariffs, and slowing short-cycle activity.

The firm indicated it would consider a more positive stance on MSA Safety shares when there is clearer visibility into the ramp of the SCBA cycle and improving short-cycle trends.

In other recent news, MSA Safety has reported robust financial results for the first quarter of 2025, surpassing both earnings and revenue forecasts. The company achieved an earnings per share (EPS) of $1.68, exceeding the expected $1.58, while revenue rose to $421 million, surpassing the forecast of $402.6 million. Additionally, MSA Safety announced the acquisition of M&C TechGroup, a German provider of gas analysis systems, for approximately $200 million, which is expected to enhance MSA’s offerings in the gas detection market. The acquisition is anticipated to be accretive to MSA’s adjusted earnings in 2025. Furthermore, MSA Safety has increased its annual dividend for the 55th consecutive year, with a 4% increase in the quarterly dividend from $0.51 to $0.53 per common share. The company also declared a dividend of $0.5625 per share on preferred stock. Analysts have noted MSA’s strong performance in the detection segment, with mid-teens growth, and the company maintains a low single-digit full-year organic growth outlook. These developments reflect MSA Safety’s strategic initiatives and commitment to delivering value to shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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