James Ricchiuti, an analyst from Needham, reiterated the Buy rating on Teledyne Technologies (TDY – Research Report). The associated price target remains the same with $585.00.
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James Ricchiuti has given his Buy rating due to a combination of factors surrounding Teledyne Technologies’ recent acquisition activities. The completion of a $710 million acquisition involving select aerospace and defense electronics businesses from Excelitas Technologies is a significant highlight. These newly acquired businesses are anticipated to contribute approximately $200 million in annual revenues with attractive adjusted EBITDA margins of about 25%.
This acquisition is strategically beneficial for Teledyne Technologies as it enhances the company’s presence in the aerospace and defense sector, which now accounts for an estimated 17% of its revenues. Furthermore, with global defense spending expected to remain robust at least until 2026, this positions Teledyne well for growth in this market. These considerations underpin the positive outlook and justify the Buy rating from Ricchiuti.
In another report released on February 3, Jefferies also maintained a Buy rating on the stock with a $600.00 price target.