DA Davidson has sustained its bullish view on Nordson Corporation, reaffirming a Buy rating alongside a revised price objective of $290 per share. This target signifies an anticipated 6.8% appreciation over the stock's current trading value of $271.55, with the share price hovering near its yearly peak of $275.43.
The investment house's positive stance stems from an in-depth, face-to-face non-deal roadshow held in New York City, featuring discussions with Nordson’s Executive Vice President and CFO, Dan Hopgood, as well as Vice President of Investor Relations, Lara Mahoney. Data from InvestingPro highlights Nordson's commanding market presence, underpinned by a market capitalization of approximately $15.19 billion and robust gross profit margins standing at 55.27%.
DA Davidson's conviction in Nordson's prospects remains solid, predicated on expectations of synchronized organic growth across its three distinct operational segments. This outlook prevails despite certain segments—Polymer Processing Systems (PPS) and Industrial Coating Systems (ICS)—experiencing subdued demand patterns, which adversely affected the firm’s performance in fiscal year 2025.
However, the analyst notes that demand in these challenged markets appears to have bottomed out, suggesting potential for a market rebound. Should these segments witness renewed strength, it could prompt upgrades to existing forecasts as 2025 progresses.
Supporting this optimistic tone, Nordson reported fourth-quarter 2025 adjusted earnings per share of $3.03, outperforming analyst expectations set at $2.93. Nonetheless, total revenue for the quarter was slightly below projections, at $752 million.
In the wake of this earnings announcement, KeyBanc adjusted its price target upward to $295 from $250, maintaining an Overweight classification, highlighting efficient margin management and a promising outlook for fiscal 2026. Concurrently, DA Davidson elevated its price target from $285 to $290, attributing this adjustment to anticipated improvements in operating margins and advantageous effects from divestitures.
Both firms preserved their Buy ratings, emphasizing Nordson’s strong free cash flow generation and profit opportunities within its MFS segment. Additionally, Nordson’s adjusted operating profit and EBITDA surpassed DA Davidson's projections, benefitting from organic sales growth spanning all product categories.
These developments underscore a generally positive consensus among analysts, despite the ongoing challenges in demand across certain industrial markets served by Nordson.