Ametek's Valuation Seen 'Reasonable" Despite Persistent Softness in A&ES Segment, Oppenheimer Says

Ametek's (AME) lowered 2024 guidance reflects ongoing softness in its Automation and Engineered Solutions segment, while the rest of its business portfolio is fairly solid, Oppenheimer said in a note sent Tuesday.

The investment firm is maintaining its outperform rating on the stock and $190 price target.

"Our Outperform rating reflects the view of reasonable valuation and low-risk principal, given methodically moderated cyclicality over past ten years, and likely consistent deal pipeline activity," it said.

Oppenheimer said the company now expects flat 2.5% organic growth for this year, compared with a low- to mid-single digit increase expected previously.

The guidance assumes "50/50 1H/2H revenue split [versus] normal 48/52%" and the "positioning reflects the view of normal environment, with some market/channel adjustments, [and] belt-tightening in softer businesses," the firm said.

Price: 164.69, Change: +0.39, Percent Change: +0.24