Margin PressureMargin performance in the quarter was below expectations, pressured by tariffs and FX.
Market Rating And ExpectationsDespite positive updates and guidance, shares are at 18 times 2026 EPS, leading to a Market Perform rating as many benefits are already reflected in the valuation.
Valuation ConcernsDespite improved execution, the current stock price already reflects much of this improvement, making further rating upgrades challenging.