Barclays analyst Adam Seiden maintained a Hold rating on Lincoln Electric Holdings (LECO) yesterday and set a price target of $90. The company’s shares opened today at $87.35.
Seiden noted:
“We’re a bit confused about the confusion around pricing; LECO’s high-single digit Americas result was always driven by surcharges – and that will tail off in 2H. Think low-single digits as an appropriate number for modeling. On volume, we do see some risk, and Q4 underlies some of this. Consumables were up mid-single digits, Equipment was down mid-single digits, but only in power-gen was the market down significantly. If the other up markets slow (which is possible in Auto, Heavy Machinery, Gen Fab) it’s likely that mid-to-high single digit volumes is now beyond us. What’s more encouraging though is that LECO is a company that’s shown an ability to execute, over various management teams – we wouldn’t want to line up against 20-25% decrementals in perpetuity.”
According to TipRanks.com, Seiden is ranked 0 out of 5 stars with an average return of -10.2% and a 28.6% success rate. Seiden covers the Industrial Goods sector, focusing on stocks such as Caterpillar, Terex Corp, and Agco.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Lincoln Electric Holdings.
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Based on Lincoln Electric Holdings’ latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $70.54 million. In comparison, last year the company had a net profit of $24.18 million.
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Lincoln Electric Holdings, Inc. engages in the manufacture of arc welding equipment, consumable welding products and other welding and cutting products. Its welding products include arc welding power sources, wire feeding systems, robotic welding packages, fume extraction equipment, consumable electrodes and fluxes.
