Andrew Obin, an analyst from Bank of America Securities, reiterated the Buy rating on Ametek. The associated price target remains the same with $225.00.
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Andrew Obin’s rating is based on Ametek’s strategic acquisition of FARO Technologies, which enhances its 3D measurement capabilities. The acquisition, valued at approximately $920 million, positions Ametek to expand its presence in the 3D measurement market, complementing its existing businesses like Creaform and Virtek Vision. This expansion is expected to create a robust $500 million 3D measurement platform, making it a significant growth driver for the company.
Additionally, Andrew Obin highlights the potential for above-average cost synergies resulting from the acquisition. Despite FARO’s current low EBITDA margin, Ametek is anticipated to streamline costs effectively, including eliminating public company expenses. This restructuring is projected to lead to earnings per share accretion by 2027, with an expected increase of $0.20. These factors, combined with a favorable price objective of $225, underpin the Buy rating for Ametek’s stock.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $200.00 price target.
AME’s price has also changed slightly for the past six months – from $188.700 to $179.200, which is a -5.03% drop .