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Jefferies Reiterates Hold Rating on Nordson (NDSN), Cuts Price Target on Trade Policies Uncertainty

On May 29, analysts at Jefferies reiterated a ‘Hold’ rating on Nordson Corporation (NASDAQ:NDSN) and cut the price target to $230 from $340. The adjustment follows the company delivering solid second-quarter fiscal 2025 results that surpassed expectations. During the quarter, the company experienced a significant rebound in its Adhesive Dispensing Systems segment.

Source: Pexels

Earnings per share in the quarter totaled $2.42, beating the consensus estimate of $2.36. Revenue was up 5% year-over-year to $683 million. Jefferies expects the momentum to continue in the third quarter owing to the semiconductor and electronics cycle. Nordson expects revenue to range between $710 million and $750 million in the third quarter. It also expects adjusted EPS of between $2.55 and $2.75.

In addition, Jefferies has reiterated the Hold rating in response to the backlog of orders that management has touted. However, the research firm cut the price target to reflect management’s cautionary stance for its fourth quarter. Nordson Corp management remains cautious due to the uncertainty surrounding trade policies between the US and other countries. The uncertainty has forced companies to resort to a conservative outlook for the latter part of the year.

Nordson Corporation is an industrial company that engineers, manufactures, and markets products and systems for dispensing, applying, and controlling various materials like adhesives, coatings, and biomaterials. It also offers solutions for fluid management, quality inspection, surface treatment, and curing.

While we acknowledge the potential of Nordson Corporation (NASDAQ:NDSN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NDSN and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None.

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