Barclays cuts Lincoln Electric estimates after ‘broad-based’ cautious commentary

Barclays notes that Lincoln Electric CEO Steven Hedlund said earlier at the Stifel London Industrials Summit that the company saw a continued deceleration in the business in July and noted that if September were to continue at the same pace, “we would be looking at a further slowing in the business that would drop our full-year organic growth estimates to be now in the mid to high single-digit declines for the business.” The firm says its unchanged $220 price target is now based on a 24.6-times P/E multiple on its 2025 EPS of $8.96, after having previously been based on a 23.1-times P/E multiple on its prior 2025 EPS forecast of $9.53. While the firm maintains an Overweight rating, it adds that at “an 18x multiple, it’s hard to quibble with the 6% decline in shares today.”