B.Riley FBR Keeps Their Buy Rating on Lincoln Electric Holdings

By Jason Carr

B.Riley FBR analyst Liam Burke reiterated a Buy rating on Lincoln Electric Holdings (NASDAQ: LECO) today and set a price target of $115. The company’s shares closed yesterday at $90.51.

Burke wrote:

“We reiterate our Buy rating and our price target of $115. With worldwide steel production a reliable leading indicator of global welding demand, in our opinion, we see overall global steel production as increasing at a faster pace than its historical average of 2% to 3%. With stable global markets, the company has increased investment in research and development (R&D) and acquired complementary technologies to increase the vitality of its existing product line and introduce new offerings such as automation to supplement core market growth. The strategy has enabled the company to sustain EBIT margins at mid-teens levels and generate very strong free cash flow with returns on invested capital (ROIC) of about 20%.”

According to TipRanks.com, Burke is a 3-star analyst with an average return of 2.6% and a 58.0% success rate. Burke covers the Industrial Goods sector, focusing on stocks such as Standex International Corp, Carlisle Companies Inc, and Enpro Industries.

Currently, the analyst consensus on Lincoln Electric Holdings is Moderate Buy and the average price target is $106.40, representing a 17.6% upside.

In a report released yesterday, Oppenheimer also assigned a Buy rating to the stock with a $105 price target.

Based on Lincoln Electric Holdings’ latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $747 million and quarterly net profit of $24.18 million. In comparison, last year the company earned revenue of $564 million and had a net profit of $53.4 million.

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Lincoln Electric Holdings, Inc. is a holding company, which through its subsidiaries manufactures welding, cutting and brazing products. The company also engages in manufacturing a broad line of arc welding equipment, consumable welding products and other welding and cutting products.