Providing a diverse range of perspectives from bullish to bearish, 8 analysts have published ratings on ESAB ESAB in the last three months.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 4 | 2 | 1 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 1 | 1 | 0 |
| 2M Ago | 0 | 3 | 1 | 0 | 0 |
| 3M Ago | 0 | 1 | 0 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $133.0, along with a high estimate of $160.00 and a low estimate of $120.00. Witnessing a positive shift, the current average has risen by 10.83% from the previous average price target of $120.00.
Understanding Analyst Ratings: A Comprehensive Breakdown
The standing of ESAB among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Saree Boroditsky | Jefferies | Announces | Buy | $160.00 | - |
| Nathan Jones | Stifel | Lowers | Hold | $130.00 | $138.00 |
| David Raso | Evercore ISI Group | Raises | Underperform | $122.00 | $102.00 |
| Bryan Blair | Oppenheimer | Raises | Outperform | $144.00 | $138.00 |
| Chris Dankert | Loop Capital | Raises | Hold | $120.00 | $105.00 |
| Bryan Blair | Oppenheimer | Raises | Outperform | $138.00 | $122.00 |
| Bryan Blair | Oppenheimer | Raises | Outperform | $122.00 | $115.00 |
| Tami Zakaria | JP Morgan | Raises | Overweight | $128.00 | $120.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to ESAB. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of ESAB compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for ESAB's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of ESAB's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on ESAB analyst ratings.
Get to Know ESAB Better
ESAB, spun off from Colfax in 2022, is a leading manufacturer of equipment and consumables used in welding, cutting, and joining applications. Alongside competitors Lincoln Electric and ITW's Miller brand, ESAB is one of the top three players in the welding space. ESAB generated roughly $2.8 billion in revenue in 2023.
ESAB: A Financial Overview
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Decline in Revenue: Over the 3 months period, ESAB faced challenges, resulting in a decline of approximately -1.14% in revenue growth as of 30 September, 2024. This signifies a reduction in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 10.14%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): ESAB's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 3.85%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 1.7%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: With a high debt-to-equity ratio of 0.64, ESAB faces challenges in effectively managing its debt levels, indicating potential financial strain.
The Basics of Analyst Ratings
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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