DA Davidson raised its price objective for MSA Safety to $235 from $186 on Tuesday and maintained a Buy rating on the shares. The updated target aligns with the highest analyst price objective on the stock. At the time of the update, MSA was trading at $202.13, near its 52-week high of $208.92.
The broker adjusted its outlook after MSA Safety released fourth-quarter 2025 results. Management's outlook showed organic growth returning to mid-single digits as National Fire Protection Association - NFPA - related issues abate and the Fire segment resumes growth. The Detection segment also carries a constructive outlook tied to the rollout of the io-6 product, and the company expects moderate margin expansion during the year.
Those developments support MSA Safety's progress toward its 2028 objective of achieving $10 to $11 of earnings per share. The company reported adjusted EPS of $2.38 for the fourth quarter of 2025, up from consensus expectations of $2.27. Revenue for the quarter came in at $511 million, topping the forecast of $508.61 million.
DA Davidson describes MSA as a high-quality compounder with a wide moat and a growing share of recurring revenue. Data from InvestingPro cited by the analyst note underscores a long record of shareholder returns through dividends: the company has paid dividends for 54 consecutive years and has increased its payout for 12 straight years. InvestingPro also characterizes MSA's balance sheet as carrying a moderate level of debt, with liquid assets exceeding short-term obligations, earning the firm a "GOOD" overall financial health score.
The note points out that, per InvestingPro metrics, the stock is trading close to its Fair Value and that its relative strength index suggests it is in overbought territory. There were no reported mergers or acquisitions in the recent updates.
Analyst reactions to the Q4 results were not specified in the information provided, and there were no reports of other upgrades or downgrades from analyst firms in the context supplied. Other company news beyond the fourth-quarter results and the guidance commentary was not mentioned.
Context and implications
The price-target increase reflects DA Davidson's assessment that the company’s growth profile and margin trajectory have improved enough to justify a higher valuation while the near-term financials—reported adjusted EPS and revenue beats—provide supporting evidence. The view that MSA remains on course for its 2028 EPS goal is contingent on the continued recovery in the Fire segment and successful execution of Detection product rollouts, which the firm highlighted in its update.
Key points
- DA Davidson raised its MSA Safety price target to $235 from $186 and kept a Buy rating.
- Q4 2025 adjusted EPS was $2.38 versus $2.27 expected, and revenue was $511 million versus $508.61 million forecast.
- InvestingPro metrics note 54 years of consecutive dividend payments, 12 years of dividend increases, moderate debt, and liquid assets exceeding short-term obligations.
Risks and uncertainties
- Valuation and momentum risk - InvestingPro indicates the stock trades close to Fair Value and that the RSI points to overbought conditions, which could affect near-term price performance.
- Execution dependence - Achievement of the 2028 $10 to $11 EPS target relies on sustained mid-single-digit organic growth, recovery in the Fire segment, and moderate margin expansion.
- Information gaps - The provided update did not include analyst reactions beyond the DA Davidson action, nor any reported upgrades or downgrades, leaving market sentiment around the results less defined.
Conclusion
DA Davidson's revision raises expectations for MSA Safety's medium-term performance while reiterating confidence in the company's durable cash flow characteristics and product-led growth in Detection. The company's recent quarter beat consensus on both EPS and revenue, and InvestingPro metrics emphasize a long dividend history and sound liquidity, even as the stock shows signs of being near fair value and technically overbought.