6 Analysts Assess ESAB: What You Need To Know

6 analysts have shared their evaluations of ESAB ESAB during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated ESAB and provided 12-month price targets. The average target is $130.83, accompanied by a high estimate of $147.00 and a low estimate of $109.00. Surpassing the previous average price target of $129.50, the current average has increased by 1.03%.

Diving into Analyst Ratings: An In-Depth Exploration

The standing of ESAB among financial experts is revealed through an in-depth exploration 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 | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Nathan Jones |Stifel |Lowers |Hold | $109.00|$125.00 | |Neal Burk |UBS |Raises |Buy | $147.00|$123.00 | |Tami Zakaria |JP Morgan |Raises |Overweight | $140.00|$133.00 | |Tami Zakaria |JP Morgan |Lowers |Overweight | $133.00|$135.00 | |Nathan Jones |Stifel |Lowers |Hold | $125.00|$131.00 | |Nathan Jones |Stifel |Raises |Hold | $131.00|$130.00 |

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to ESAB. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of ESAB compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

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.

About ESAB

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 $2.7 billion in revenue in 2024.

Key Indicators: ESAB's Financial Health

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3M period, ESAB faced challenges, resulting in a decline of approximately -2.7% in revenue growth as of 31 December, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 8.01%, 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 2.98%, 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 1.32%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.66, caution is advised due to increased financial risk.

What Are Analyst Ratings?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.