Market Overview

Nordson Is A Core Industrial Tech Holding, DA Davidson Says Ahead Of Q1 Print

Share:
Nordson Is A Core Industrial Tech Holding, DA Davidson Says Ahead Of Q1 Print
Related NDSN
38 Stocks Moving In Tuesday's Mid-Day Session
25 Stocks Moving In Tuesday's Pre-Market Session

A D.A. Davidson analyst made a bullish case for Nordson Corporation (NASDAQ: NDSN), a manufacturer of adhesive dispensers, ahead of the Ohio-based company's first-quarter report after the close Thursday. 

The Analyst

D.A. Davidson analyst Matt Summerville initiated coverage of Nordson shares with a Buy rating and a 12-18-month price target of $160, suggesting roughly 15-percent upside from current levels.

The Thesis

Nordson's long-term secular factors, sound execution, consistent free cash flow generation, sizable aftermarket/consumable revenue stream and geographic end-market diversity all serve to make it a solid, core industrial technology holding, Summerville said in a Wednesday note. (See the analyst's track record here.) 

Nordson possesses significant market share and strong brand equity across all three reportable business segments, the analyst said: Adhesive Dispensing Systems, Advanced Technology Systems and Industrial Coating and Automotive Systems.

Despite challenging organic comparisons in some business segments, Nordson is on track to generate solid organic sales growth, further operating margin improvement and earnings per share expansion, Summerville said. 

"We also believe current consensus views may prove conservative based on our organic growth outlook, an incrementally more favorable FX backdrop and potential benefits from recent tax reform," he said. 

D.A. Davidson estimates 2018 earnings of $6.45 per share, including Q1 earnings per share of $1.37 compared to 86 cents one year ago. The research firm projects total organic sales growth of 4-5 percent, acquisitions-related accretion of 10 cents and about 3.5 points of forex tailwind.

For 2019, D.A. Davidson estimates earnings per share of $6.90.

The Price Action

Nordson shares are up about 16 percent over the past year.

Related Links:

Adding Some Spice To The Industrial Trade

Earnings Scheduled For February 22, 2018

Latest Ratings for NDSN

DateFirmActionFromTo
May 2018B. Riley FBRMaintainsBuyBuy
Feb 2018Wells FargoMaintainsMarket PerformMarket Perform
Feb 2018DA DavidsonInitiates Coverage OnBuy

View More Analyst Ratings for NDSN
View the Latest Analyst Ratings

Posted-In: DA Davidson Matt SummervilleAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

 

Related Articles (NDSN)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
ALRMImperial CapitalUpgrades58.0
ANDXSunTrust Robinson HumphreyDowngrades41.0
CMANomuraDowngrades86.0
CSLLongbow ResearchUpgrades122.0
HBANNomuraDowngrades15.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

45 Stocks Moving In Thursday's Mid-Day Session

How Long Will The Cryptocurrency GPU Boom Last?