Nordson (NDSN) is better positioned than in previous cycles, with orders accelerating across its business and an attractive valuation following a recent stock decline, KeyBanc Capital Markets said in a Tuesday note.

The firm noted that electronics markets, which have been in a down cycle for two years, appear to be nearing an inflection point. Order rates began to recover in Q1 and should support at least a modest rebound through the remainder of fiscal 2025 and into 2026.

KeyBanc has historically favored buying Nordson during electronics weakness and believes this pattern is playing out again.

Beyond electronics, medical and agriculture headwinds are expected to ease. In medical, customer de-stocking appears nearly complete, supporting a more normalized earnings trajectory. Meanwhile, agriculture, which faced challenges following the ARAG acquisition, seems to be stabilizing at a low level.

For industrial precision solutions, the analysts see relative stability, though they acknowledge tough order comparisons ahead due to prior backlog-driven growth.

KeyBanc upgraded the company's stock to overweight from sector weight and established a price target of $260.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

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