Stifel has maintained its Buy recommendation on Mettler-Toledo (NYSE: MTD), assigning a price target of $1,600 after the company released its fourth-quarter financial results. That target sits below the analyst high of $1,700 but notably above the stock's most recent trading level of $1,373.57.
In the fourth quarter, the maker of precision instruments surpassed consensus estimates for both revenue and earnings and slightly raised its earnings outlook for fiscal 2026. The company reported basic earnings per share of $42.17 for the last twelve months, and analysts are forecasting EPS to climb to $45.71 in fiscal 2026.
On the cash-flow front, Mettler-Toledo expects to produce roughly $900 million in free cash flow during the current year. Stifel's analysis indicates management plans to dedicate between $825 million and $875 million of that cash to share repurchases. Over the last twelve months the company generated $848.65 million in levered free cash flow, and management activity has reflected aggressive buyback execution.
Margin dynamics are a focal point in the firm's analysis. Stifel notes that tariffs and currency translation pressures have applied downward pressure on margins; absent those effects, operating margins would have expanded by an estimated 60 to 70 basis points. Still, Mettler-Toledo retains a substantial gross profit margin of 59.37% and operates with what Stifel characterizes as a moderate level of debt.
Service revenue represents a roughly $1 billion segment for the company and is expanding at a rate faster than the corporate average, according to the report. Stifel projects a softer start to the year in the first quarter but expects an earnings beat for Q1 and accelerating performance thereafter, stating there are "more tailwinds than headwinds" for Mettler-Toledo in the current fiscal year.
Valuation metrics factor into the analyst debate. The stock currently trades at a price-to-earnings ratio of 32.67, a level that is considered high relative to near-term earnings growth projections.
Other analyst activity and corporate developments
Bank of America Securities reacted to Mettler-Toledo's fourth-quarter results by raising its price target to $1,640 while keeping a Buy rating, citing effective execution and a prudent outlook for 2026. The firm had earlier upgraded the stock from Neutral to Buy.
Goldman Sachs has initiated coverage with a Neutral rating and a $1,475 price target, noting consistent performance and a differentiated pricing profile. Morgan Stanley also began coverage with an Equalweight rating and set a $1,550 price target, pointing to the company's commercial execution and record of revenue growth.
Board changes were also disclosed: Michael J. Tokich, the former chief financial officer of STERIS, will join Mettler-Toledo's board of directors, with the appointment effective February 5, 2026.
Outlook
Taken together, analyst views show a spectrum of perspectives on Mettler-Toledo's near-term trajectory even as several firms affirm Buy or Neutral stances. Stifel's reiteration emphasizes free cash flow conversion and share-repurchase capacity as central supports for its target, while noting margin headwinds that temper upside. Investors weighing the name may consider the company's strong service revenue growth and cash generation alongside a relatively rich P/E multiple.