DA Davidson raised its price target on Ametek Inc. to $265.00 from $240.00 and maintained a Buy rating on the stock. The newly published target implies roughly a 15% upside from the then-current share price of $229.79, with the stock trading near its 52-week high of $234.56. Data cited in the analysis show Ametek has returned 26.48% over the past 12 months.
The brokerage attributed the upward revision to a combination of stronger-than-expected fourth-quarter results, persistent core growth and improved bookings that helped lift the company to record backlog levels. Over the most recent twelve-month period, Ametek delivered 6.63% revenue growth, bringing trailing revenue to $7.4 billion.
DA Davidson called out end-market momentum in several areas. Medical applications, including contributions from Paragon, along with aerospace and defense, automation and power, were identified as either accelerating or remaining solid. By contrast, the report noted that customer tentativeness within Ametek’s EIG Process segment appears to be inflecting, indicating a potential moderation in that specific submarket.
From a profitability perspective, Ametek sustained a healthy gross profit margin of 36.38% and posted a 15% return on equity, metrics the research team used to support its assessment that the company has favorable price/cost dynamics and reliable operational execution. In its commentary, DA Davidson described Ametek as a "best-in-class over-the-cycle name."
Independent data referenced in the review assessed Ametek’s overall financial health as "GOOD," assigning a score of 2.84. The analyst also pointed to conservative net leverage of 0.8x, strong free cash flow conversion and an active merger and acquisition pipeline as elements expected to support continued capital compounding for shareholders. Supplementary figures show a moderate debt-to-equity ratio of 0.21 and a long-standing record of shareholder distributions, with dividends paid for 55 consecutive years.
Recent company-reported results reinforced the analyst view. Ametek disclosed quarterly sales that rose 13% year-over-year, comprised of 5% organic growth, 7% from acquisitions and a 1% benefit from foreign exchange. While adjusted operating margins experienced a slight decline, core margins improved when excluding certain costs identified by management.
The company also reported record orders of $2.0 billion and a backlog of $3.58 billion, yielding a book-to-bill ratio of 1.02x. These order metrics were cited by multiple firms as evidence of demand resilience across Ametek’s served markets.
Analyst reactions to the results were broadly favorable. Truist Securities raised its price target to $265, KeyBanc Capital Markets increased its target to $260, and DA Davidson reiterated a Buy rating with a $240 price target in related commentary. Separately, RBC Capital lifted its target to $257 after a modest operating beat and in-line guidance for 2026, and TD Cowen raised its target to $260, referencing strength in aerospace, defense and power.
The combination of solid top-line growth, record backlog metrics and margin durability are the primary reasons firms covering Ametek have adjusted valuations upward. At the same time, pockets of customer hesitancy in specific segments remain a point of attention for the near term.
Investors evaluating Ametek will likely weigh the company’s mix of organic growth, acquisition contributions and margin dynamics against the varying demand signals across its end markets while noting the company’s conservative leverage and consistent dividend history.