Loop upgrades ESAB to Buy on overblown investor concerns

Loop Capital upgraded ESAB (ESAB) to Buy from Hold with a price target of $140, up from $130. The views the recent pullback in the shares as overdone and sees a buying opportunity at current levels. Concerns around ESAB’s Americas growth rate underappreciate the company’s “multi-year winning streak” and tougher relative comps relative to peers, the analyst tells investors in a research note. Loop believes the company’s equipment refresh will continue to drive sales growth and margin expansion following the Q2 “hiccup.” ESAB is well positioned to benefit from a recovery in global industrial production following two soft years, the firm contends.