JPMorgan Maintains Overweight Rating on ESAB Corporation (ESAB)

ESAB Corporation (NYSE:ESAB) is one of the 15 best Industrial Machinery and Supplies stocks to buy according to Hedge Funds.

On February 3, JPMorgan analyst Tami Zakaria reaffirmed her Overweight rating on ESAB Corporation (NYSE:ESAB). She revised her price target downward from $140 to $138 amid a potential dilutive impact of nearly 6 cents a share in 2026, from the company’s pending acquisition of Eddyfi. The analyst also expressed reservations on the acquisition multiple of 14.5x, which appears higher based on the precedent transactions analysis of the segment. However, Zakaria believes that the acquisition will turn accretive by roughly 5 cents in 2027.

On January 23, Bryan Blair from Oppenheimer raised his target price for ESAB Corporation (NYSE:ESAB) from $142 to $148. The analyst also maintained an Outperform rating on the stock, implying over 29% upside.

Blair noted an 8% decline in the share price since the company’s second-quarter results in August. This reflects investor skepticism about the company’s growth potential and margin expansion. However, he views prevailing headwinds as temporary and expects the company to deliver margin improvement and EBX-guided growth in the foreseeable future.

ESAB Corporation (NYSE:ESAB) is an industrial compounder that manufactures and supplies consumable products and equipment. These include cutting material, consumables & gas controlling solutions, and welding equipment. The company also offers software and digital solutions to enhance productivity and enable remote monitoring of welding operations.

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Disclosure: None. This article is originally published at Insider Monkey.