Analyst Brett Linzey of Mizuho Securities reiterated a Buy rating on Ametek (AME – Research Report), with a price target of $166.00.
Brett Linzey’s Buy rating for Ametek (AME) is influenced by a number of aspects. Firstly, despite mixed markets and some moderation in short-cycle, AME managed to execute solidly, with Engineered Instrument Group (EIG) margins increasing due to robust leverage, price/cost, and deal integration. Additionally, the acquisition of Paragon is expected to provide modest accretion in the first year, acting as a hedge against base moderation, a factor that further bolsters the Buy rating.
In addition to these factors, Linzey adjusted the 2023 and 2024 estimated earnings per share (EPS) upwards, reflecting a higher exit margin run rate and the Amplifier deal. Furthermore, AME’s recent acquisitions, notably Paragon Medical and Amplifier Research, add significant value, with Paragon contributing to their medical technology exposure. Finally, even though there were some challenges in the market, such as inventory destock headwinds and weaker international growth, AME still managed to display steadfast execution and solid growth in the US market.
According to TipRanks, Linzey is a 4-star analyst with an average return of 3.8% and a 50.68% success rate. Linzey covers the Industrials sector, focusing on stocks such as Dover, Honeywell International, and Lennox International.
In another report released on October 31, RBC Capital also assigned a Buy rating to the stock with a $186.00 price target.
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Ametek (AME) Company Description:
AMETEK, Inc. is a global manufacturer of electronic instruments and electromechanical devices. The company specializes in manufacturing instruments used for monitoring, examining, calibration and display purposes in the power, aerospace and industrial instrumentation markets. It also produces engineered electrical connectors and electronics packaging for electronic applications in defense, aerospace, medical and industrial markets.
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