RBC bullish on Ametek's acquisition strategy, raises PT
05/04/2024 15:50
** Shares of industrial technology solutions provider Ametek
AME.N rise 1.3% to $181.66
** RBC raises PT on co to $216 from $188
** "We consider AMETEK to be among the sector-best acquirers
with an ROIC (return on invested capital) above the sector
average and rising even as it allocates nearly all of its free
cash flow to deals," RBC said
** "AMETEK appears to have a good pipeline of bolt-on deals
that should produce more targets in the 8x–9x EBITDA area where
it has historically created significant shareholder value," RBC
added
** Not to be lost in AMETEK’s M&A acumen and management
reputation...it also has one of the best sets of Industrial
businesses in the sector, in our view - brokerage
** 9 of 16 brokerages rate the stock "buy", 7 "hold"; their
median PT is $195
** YTD, AME up 9.9%
(Reporting by Abhinav Parmar in Bengaluru)
((Abhinav.parmar@thomsonreuters.com))