UPDATE: BMO Capital Markets Upgrades Nordson Corporation to Outperform, Raises PT on Cautious Guidance

In a report published Monday, BMO Capital Markets upgraded its rating on Nordson Corporation

from Market Perform to Outperform, and raised its price target from $63.00 to $74.00. BMO Capital Markets noted, “Headline GAAP EPS was $0.65 per share. However, GAAP EPS included a $0.04 per share discrete tax charge and $0.01 per share severance and restructuring. The earnings miss was a result of lower-than-expected revenue and operating margin in Adhesive Dispensing Systems. Both sales and EPS guidance for FY2Q13 are below our previous estimates and consensus, although total 12-week order growth of 4% is in line with last quarter of 5% on a similar comparison. We believe fiscal 2H13 and FY2014 will see improving margins and earnings growth and that the valuation has become more compelling.” Nordson Corporation closed on Friday at $62.00.