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Peeling Back The Layers: Exploring Lincoln Electric Holdings Through Analyst Insights

Author: Benzinga Insights | April 26, 2024 08:00am

4 analysts have expressed a variety of opinions on Lincoln Electric Holdings (NASDAQ:LECO) over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 2 2 0 0
Last 30D 0 1 0 0 0
1M Ago 0 0 1 0 0
2M Ago 0 0 0 0 0
3M Ago 0 1 1 0 0

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $253.0, along with a high estimate of $280.00 and a low estimate of $239.00. Marking an increase of 8.12%, the current average surpasses the previous average price target of $234.00.

price target chart

Breaking Down Analyst Ratings: A Detailed Examination

A comprehensive examination of how financial experts perceive Lincoln Electric Holdings is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Mircea Dobre Baird Lowers Outperform $252.00 $257.00
Nathan Jones Stifel Raises Hold $241.00 $239.00
Nathan Jones Stifel Raises Hold $239.00 $208.00
Steve Barger Keybanc Raises Overweight $280.00 $232.00

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Lincoln Electric Holdings. This offers insight into analysts' perspectives on the current state of the company.
  • Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Lincoln Electric Holdings compared to the broader market.
  • Price Targets: Understanding forecasts, analysts offer estimates for Lincoln Electric Holdings's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Lincoln Electric Holdings's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Lincoln Electric Holdings analyst ratings.

Get to Know Lincoln Electric Holdings Better

Lincoln Electric is a leading manufacturer of welding, cutting, and brazing products. The firm's portfolio of products includes arc-welding solutions, plasma and oxy-fuel cutting systems, and brazing and soldering alloys, as well as automation solutions. Lincoln Electric serves clients in the general fabrication, heavy industries, automotive, construction, shipbuilding, energy and process industries, among other end markets. Based in Cleveland, Ohio, Lincoln Electric has operations in 19 countries and has 11,000 employees worldwide. The company generated roughly $4.2 billion in sales in 2023.

Financial Milestones: Lincoln Electric Holdings's Journey

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Lincoln Electric Holdings's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 13.7%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Lincoln Electric Holdings's net margin is impressive, surpassing industry averages. With a net margin of 14.8%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 12.36%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 4.67%, the company showcases effective utilization of assets.

Debt Management: Lincoln Electric Holdings's debt-to-equity ratio surpasses industry norms, standing at 0.84. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Understanding the Relevance of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: LECO

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