Overview
BofA Securities has raised its price target for ESAB (NYSE:ESAB) to $150.00 from $147.00 and left its rating at Buy. At the time of the update ESAB was trading at $114.62, had an approximate market capitalization of $7 billion and a price-to-earnings ratio of 25.4.
Quarterly read-throughs
The analyst action follows ESAB's preliminary fourth quarter 2025 results. The company recorded EBITDA and earnings per share at the high end of its guidance range even though sales came in below expectations. Data for the last twelve months show ESAB has been profitable, with LTM EBITDA of $541.31 million.
BofA noted that the sales shortfall was primarily caused by weaker December demand in South America and Europe, and the firm attributed the underperformance in those regions in part to an extra week of holiday shutdowns.
2026 outlook and analyst view
ESAB issued guidance for 2026 that projects sales between $2.85 billion and $2.95 billion, EBITDA of $575 million to $595 million, and EPS of $5.70 to $5.90. The midpoint of that range sits slightly below consensus estimates. BofA Securities described the 2026 outlook as "conservative and achievable," adding that the company has a record of outperformance by setting achievable quarterly guidance.
Importantly, BofA pointed out that the 2026 guidance excludes any contribution from Eddyfi.
Eddyfi acquisition and peer reactions
ESAB has entered a definitive agreement to acquire Eddyfi Technologies for $1.45 billion. The purchase is expected to close in mid-2026 and will be financed through a combination of cash, debt and $318 million in committed equity. By 2026, Eddyfi is forecast to generate about $270 million in revenue and $80 million in adjusted EBITDA, with potential synergies that could raise EBITDA to $100 million.
Market reactions among analysts have varied. JPMorgan adjusted its price target for ESAB to $130, citing the acquisition's expected impact on earnings. Oppenheimer raised its target to $148 and maintained an Outperform rating. Stifel reiterated a Buy rating and set a $143 price target. These updates reflect different assessments of ESAB's growth prospects tied to the acquisition. ESAB has said it will retain Eddyfi's workforce and headquarters in Quebec City.
Conclusion
BofA's move to increase the price target to $150 while preserving a Buy rating signals confidence in ESAB's near-term earnings power and the achievability of 2026 guidance, even as sales in the fourth quarter fell short of expectations. The strategic acquisition of Eddyfi adds a new variable to ESAB's earnings trajectory, with analysts presenting differing price targets in response.