Strategic Acquisition Boosts MSA Safety’s Growth and Revenue Outlook

William Blair analyst Ross Sparenblek has maintained their bullish stance on MSA stock, giving a Buy rating on May 5.

Ross Sparenblek has given his Buy rating due to a combination of factors, primarily centered around MSA Safety’s strategic acquisition of M&C TechGroup. This acquisition is expected to significantly expand MSA’s fixed gas detection business, adding a substantial revenue contribution by 2025. The deal, valued at approximately $200 million, is anticipated to be slightly accretive to MSA’s earnings per share, enhancing the company’s financial performance.
Furthermore, M&C TechGroup’s strong position in a fragmented market complements MSA’s existing operations, offering potential growth opportunities through expanded distribution networks, particularly in North America. The acquisition also aligns with MSA’s strategy of increasing its recurring revenue mix, as a significant portion of M&C TechGroup’s revenue is derived from replacement and recurring parts. These strategic advantages, coupled with minimal U.S. import exposure, underpin Sparenblek’s positive outlook on MSA’s stock.

In another report released on May 5, D.A. Davidson also maintained a Buy rating on the stock with a $183.00 price target.

Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MSA in relation to earlier this year.