DA Davidson has raised its price objective for Nordson shares (NASDAQ:NDSN) to $335 from $290 and continues to rate the stock as a Buy. The firm’s update accompanies a modest upward revision to its fiscal 2026 and fiscal 2027 forecasts, with the fiscal 2026 adjustment chiefly driven by stronger-than-anticipated growth within Nordson’s Advanced Technology Systems (ATS) segment tied to semiconductor-related demand.
At the time of the note the stock was trading at $290.51, reflecting a 37% gain over the prior 12 months, although InvestingPro analysis indicates the shares may be trading above their Fair Value.
The analyst team at DA Davidson described inbound order activity in Nordson’s IPS and MFS segments as healthy. They qualified that comment by noting weather-related impacts have affected MFS’s near-term cadence. Beyond segment-specific detail, DA Davidson highlighted stabilization in demand related to automotive end markets and polymer processing systems (PPS).
Overall, DA Davidson expects a year in which Nordson’s three primary segments - ATS, IPS and MFS - deliver synchronized organic growth. The firm said current demand conditions are positioning the company for improved performance across its business units.
On the balance sheet front, DA Davidson pointed to net leverage of 2.1 times, saying the capital structure provides latitude for additional share repurchases and merger-and-acquisition activity. The company also reported a current ratio of 2.72 and a debt-to-equity ratio of 0.64, metrics DA Davidson presented as evidence of a sound financial position.
Those balance-sheet remarks came alongside Nordson’s recently reported first-quarter fiscal 2026 results. The company posted sales of $669 million, a 9% year-over-year increase, with organic growth contributing 7 percentage points of that rise. Adjusted earnings per share increased 15% to $2.37, a figure that matched analyst expectations. Revenues beat consensus by $16.18 million.
In response to the quarterly report, Jefferies raised its price target on Nordson to $300 but retained a Hold rating. DA Davidson and Jefferies both pointed to effective cost control and operational leverage as central drivers of the quarter’s results. Together, the analyst actions and the quarterly performance depict a company in a steady operational position, supported by improving end-market demand in key segments.
Key points
- DA Davidson increases Nordson price target to $335 from $290 and keeps a Buy rating.
- Fiscal 2026 and 2027 estimates were nudged higher, with ATS growth tied to semiconductor demand driving much of the 2026 revision.
- Nordson reported Q1 fiscal 2026 sales of $669 million (up 9%) and adjusted EPS of $2.37 (up 15%), beating revenue estimates by $16.18 million.
Sectors impacted
- Semiconductors - demand in ATS was highlighted as a key growth driver.
- Industrial manufacturing and automotive - stabilization noted in related demand streams.
- Capital markets - analyst target changes and valuation commentary influence investor expectations.
Risks and uncertainties
- Weather-related impacts to MFS could disrupt near-term order flows and revenue timing - this affects industrial and manufacturing end markets.
- Valuation risk: InvestingPro analysis suggests the shares are trading above Fair Value, introducing downside risk if demand or execution weakens - relevant to equity markets and investors in industrial names.
- Segment demand variability: Although DA Davidson expects synchronized organic growth, demand across ATS, IPS and MFS could diverge, creating earnings and cash-flow uncertainty for the company and its suppliers.
Bottom line
DA Davidson’s upgrade of Nordson’s target reflects a view that semiconductor-related strength in ATS and healthier order books across IPS and MFS will support better performance. The company’s first-quarter results and conservative leverage allow flexibility for share repurchases or acquisitions, but weather-related disruptions and valuation considerations remain near-term uncertainties for investors.