Angel Castillo, an analyst from Morgan Stanley, maintained the Hold rating on Donaldson Company. The associated price target remains the same with $84.00.
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Angel Castillo has given his Hold rating due to a combination of factors including the company’s recent financial performance and future outlook. Donaldson Company raised its FY26 adjusted EPS outlook slightly, which aligns closely with market expectations, indicating stability but not significant growth potential. The adjusted operating margin forecast was also modestly increased, suggesting some operational improvements, yet still within a narrow range that doesn’t suggest a major shift in profitability.
However, there are areas of concern that temper enthusiasm. The constant currency growth was slightly below expectations, particularly in the Industrial Solutions segment, which underperformed against projections. Additionally, the F1Q26 adjusted operating margin came in slightly below forecasts, which could indicate challenges in maintaining cost efficiencies. These mixed signals contribute to the Hold rating, as the stock appears to be fairly valued with limited upside potential in the near term.
Castillo covers the Industrials sector, focusing on stocks such as Agco, Caterpillar, and Donaldson Company. According to TipRanks, Castillo has an average return of -2.7% and a 47.86% success rate on recommended stocks.
In another report released on November 24, Stifel Nicolaus also maintained a Hold rating on the stock with a $90.00 price target.