Baird Lowers Donaldson (DCI) Price Target, Stays Bullish on Industrial Tech

Donaldson Company, Inc. (NYSE:DCI) is included among the 14 Cheap DRIP Stocks to Buy Now.

Baird Lowers Donaldson (DCI) Price Target, Stays Bullish on Industrial Tech

On March 30, Baird lowered its price recommendation on Donaldson Company, Inc. (NYSE:DCI) to $95 from $104. It reiterated an Outperform rating on the shares. The firm said it remains constructive on the advanced industrial technology group. It pointed out that exposure to the Middle East is limited, while cyclical indicators are still trending toward improvement in 2026 and 2027. In its view, the recent pullback in these stocks presents a buying opportunity.

During the fiscal Q2 2026 earnings call, Chairman, CEO, and President Tod Carpenter said the company delivered record sales in the second quarter. He noted that the team worked to keep pace with strong demand across all three business segments. He also expressed confidence in the updated fiscal 2026 outlook. He indicated that the company expects record sales of around $3.8 billion, with operating margins and adjusted earnings per share reaching all-time highs.

Carpenter pointed to the acquisition of Facet, calling it the largest deal in the company’s history. He said the business is expected to contribute nearly $110 million in sales, with gross and EBITDA margins well above the company’s average. He added that about 70% of Facet’s revenue comes from recurring, regulated replacement part sales.

Donaldson Company, Inc. (NYSE:DCI) focuses on technology-driven filtration products and solutions, serving a range of industries and advanced markets. The company operates through Mobile Solutions, Industrial Solutions, and Life Sciences segments.

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