Donaldson Company, the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Angel Castillo from Morgan Stanley maintained a Sell rating on the stock and has a $69.00 price target.
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Angel Castillo has given his Sell rating due to a combination of factors despite Donaldson Company’s recent financial performance. Although the company reported a higher-than-expected adjusted EPS for the fourth quarter of fiscal year 2025 and issued an optimistic outlook for fiscal year 2026, there are underlying concerns that influenced the rating.
One of the key reasons for the Sell rating is the slight underperformance in the adjusted operating margin for the fourth quarter, which fell short of expectations due to tariff-related headwinds and costs from optimization initiatives. Additionally, while the company’s guidance for fiscal year 2026 appears strong, there are questions regarding the health of its key end-markets and the assumed recovery in the original equipment channel, which could pose risks to future performance.
According to TipRanks, Castillo is an analyst with an average return of -0.7% and a 49.22% success rate. Castillo covers the Industrials sector, focusing on stocks such as Oshkosh, Caterpillar, and CNH Industrial.