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Investing.com - UBS raised its price target on ESAB (NYSE:ESAB) to $149.00 from $147.00 on Monday, while maintaining a Buy rating on the welding equipment manufacturer’s stock. The company, currently trading at $123 with a market cap of $7.4 billion, maintains strong financial health according to InvestingPro data, with a healthy current ratio of 1.95 and annual revenue of $2.74 billion.
The price target adjustment comes ahead of ESAB’s third-quarter results, scheduled for release on October 29, 2025. With three analysts recently revising earnings estimates upward according to InvestingPro data, and analyst targets ranging from $118 to $160, UBS identified improving organic growth in the Americas as the key performance indicator for the company’s shares.
UBS noted that investor sentiment toward ESAB has improved in recent weeks, though the stock still lags behind competitor Lincoln Electric (NASDAQ:LECO) by 25 percentage points year-to-date. The firm characterized this underperformance as "overdone."
The research firm acknowledged ESAB’s organic sales growth in the second quarter meaningfully lagged peers but cautioned against extrapolating from a single quarter’s performance, noting the welding industry’s volatility.
UBS’s analysis indicated that ESAB’s organic growth has historically performed at or above peer levels over time, supporting the firm’s continued Buy rating despite recent underperformance.
In other recent news, ESAB Corp reported better-than-expected earnings for the second quarter of 2025, with an earnings per share (EPS) of $1.36, surpassing the forecasted $1.34. The company’s revenue also exceeded expectations, reaching $716 million compared to the anticipated $672.49 million. Despite these strong financial results, the company’s stock experienced a decline in premarket trading. Additionally, Stifel upgraded ESAB’s stock rating from Hold to Buy, maintaining a price target of $141, after the company slightly raised its guidance. Loop Capital also upgraded ESAB to Buy from Hold, citing an improved growth outlook and raising its price target to $140 from $130. Roth/MKM initiated coverage on ESAB with a Buy rating and set a price target of $150. The firm noted that ESAB shares were "unfairly punished" following the second-quarter results, which they believe presents an attractive entry point for investors. These developments highlight a positive sentiment among analysts despite recent stock fluctuations.
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