JPMorgan analyst Tami Zakaria raised the firm’s price target on ESAB (ESAB) to $70 from $60 and keeps an Overweight rating on the shares ahead of the company’s Q4 results. The firm expects the company to guide organic revenue growth of low-to-mid single digits, primarily driven by pricing, EBITDA margin expansion due to incremental cost savings from EBX initiatives and footprint rationalization, and improving price-cost. The analyst says the valuation gap for ESAB shares versus Lincoln Electric (LECO) should narrow over time driven by the former’s gradual de-leveraging of the balance sheet and ongoing margin improvement initiatives.
Published first on TheFly
