After Wolfe Research and BMO Capital gave Ametek Inc (NYSE: AME) a Buy rating last month, the company received another Buy, this time from Oppenheimer. Analyst Christopher Glynn assigned a Buy rating to Ametek Inc yesterday and set a price target of $90. The company’s shares closed yesterday at $74.90.
Glynn commented:
“AME delivered 5.5% 4Q18 organic growth and 7% for 2018, and invested $1.1B on six acquisitions with combined sales of $350M, which should carry about 5%/ $240M incremental top-line growth in 2019. In connection with AME’s move to “cash earnings,” we are recasting ’18 EPS: 2018 now $3.66 vs. $3.29 result on old basis; 4Q of $0.96 vs. $0.86; adds $0.43 to ’19E. 2018 reflects 99% FCF/ANI on new basis, but with some working capital investment, and 2016-17 were each about 130% FCF/NI; we expect ~120% FCF/ANI long term. AME ended 2018 at 2x debt/EBITDA, even with 2017 even after strong deal pace and $368M share repurchase (predominantly in 4Q).”
According to TipRanks.com, Glynn is a 5-star analyst with an average return of 6.9% and a 59.7% success rate. Glynn covers the Industrial Goods sector, focusing on stocks such as Honeywell International, Roper Technologies, and Eaton Corporation.
Ametek Inc has an analyst consensus of Strong Buy, with a price target consensus of $85, representing a 13.5% upside. In a report issued on January 28, BMO Capital also reiterated a Buy rating on the stock with a $90 price target.
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The company has a one-year high of $81.92 and a one-year low of $63.14. Currently, Ametek Inc has an average volume of 1.53M.
Based on the recent corporate insider activity of 80 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AME in relation to earlier this year.
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AMETEK, Inc. engages in the manufacture of electronic instruments and electromechanical devices. It operates through the following group business segments: Electronic Instruments and Electromechanical.
