Lincoln Electric initiated with a Sell at UBS

UBS analyst Robert Jamieson initiated coverage of Lincoln Electric with a Sell rating and $170 price target. The analyst believes the stock’s risk is skewed 1.8-to-1 to the downside. The shares are pricing in adjusted EBIT margin of 18.2%, materially higher than UBS’s estimates and implying incremental margin sustained at 30%, a level that has only been achieved by the company in five out of 58 quarters since 2009, the analyst tells investors in a research note. The firm’s analysis indicates Lincoln Electric’s automation margin will remain dilutive to total company results.