In a report released yesterday, Christopher Glynn from Oppenheimer maintained a Buy rating on Nordson Corp (NDSN), with a price target of $150. The company’s shares closed yesterday at $135.84.
Glynn observed:
“We continue to favor shares of NDSN for core long-term compounding characteristics, with favorable fundamental set-ups against easing comparisons and excellent/highly defensible financial profile: 55% gross margin, 27% EBITDA margin, 5% five-year organic CAGR. We believe guidance for 3-5% FY19 organic growth (we are at midpoint) and 100-150 bps OM expansion (we are at low end) appears in sync with portfolio characteristics and remain quite comfortable with our $6.40 FY19E EPS. We do believe FY2Q consensus appears a little aggressive ($1.62E vs. our $1.52E), considering normal FY2H seasonal lift profile and associated leverage, and we treat FY2Q as more of a bridge quarter (but with clear lift from 1Q): 1Q backlog up 9%, but varied lead times/not all flows in FY2Q.”
According to TipRanks.com, Glynn is a 4-star analyst with an average return of 6.1% and a 58.2% success rate. Glynn covers the Industrial Goods sector, focusing on stocks such as Emerson Electric Company, Honeywell International, and Roper Technologies.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Nordson Corp with a $145 average price target.
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The company has a one-year high of $146.84 and a one-year low of $110.16. Currently, Nordson Corp has an average volume of 239.2K.
Based on the recent corporate insider activity of 70 insiders, corporate insider sentiment is negative on the stock. Last month, John J. Keane, the EVP of NDSN sold 43,900 shares for a total of $5,824,976.
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Nordson Corp. engages in the engineering, manufacture and market of products and systems used for adhesives, coatings, sealants, biomaterials and other materials. It operates through three segments: Adhesive Dispensing, Advanced Technology, and Industrial Coating Systems.
