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Baird has increased the price target for shares of Nordson (NASDAQ:NDSN) Corporation (NASDAQ: NDSN), a leading supplier of precision dispensing equipment, to $287 from $272, while reaffirming an Outperform rating on the stock.
The adjustment follows Nordson's third-quarter financial results, which surpassed expectations due to strong margins and Advanced Technology Solutions (ATS) revenue performance.
The company's third-quarter results demonstrated operational strength, leading to the price target revision. The maintained guidance reflects a balance between the third quarter's operational outperformance and the anticipated dilution from the recent Atrion acquisition. Despite this, Baird expects mixed revenue trends to persist in the near term.
The improved trajectory for ATS is likely to be counterbalanced by some pressure on the Medical Fluid & Imaging Solutions (MFS) and Industrial Precision Solutions (IPS) sectors, notably due to challenging year-over-year comparisons and a softening in interventional demand.
In other recent news, Nordson Corporation's third-quarter earnings report exceeded analysts' expectations, with its earnings per share (EPS) surpassing predictions by $0.02. This success was largely attributed to strong performances in the Advanced Technology Systems (ATS) and Industrial Precision Solutions (IPS) segments.
Nordson's full-year 2024 guidance has been revised to include a $30 million contribution from its recent acquisition of Atrion Corporation. The company has also increased its revenue guidance for fiscal year 2024 to a range of $2.665-$2.705 billion, up from its previous outlook.
KeyBanc maintained its Sector Weight rating for Nordson, influenced by the company's consistent EPS expectations and positive trends in the IPS segment. Meanwhile, DA Davidson retained a Buy rating for the company, highlighting Nordson's solid balance sheet and free cash flow profile.
InvestingPro Insights
In light of Baird's recent price target increase for Nordson Corporation, it's worth noting that the company has been demonstrating a solid financial performance. According to InvestingPro data, Nordson boasts an impressive gross profit margin of 55.07% over the last twelve months as of Q3 2023. This emphasizes the operational strength Baird highlighted in their analysis and supports the company's ability to maintain high profitability levels.
Additionally, Nordson has a track record of returning value to shareholders, having raised its dividend for an impressive 31 consecutive years, with a dividend yield currently standing at 1.22%. This long-term commitment to dividends underscores the company's financial stability and disciplined capital management strategy, which aligns with Baird's confidence in Nordson's growth and operational excellence.
For investors seeking more in-depth analysis, there are numerous additional InvestingPro Tips available for Nordson, including insights on the company's valuation multiples, debt levels, and stock volatility. These tips can offer a more comprehensive understanding of Nordson's financial health and market position. To explore these further, one can visit InvestingPro's dedicated page for Nordson at https://www.investing.com/pro/NDSN.
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