Oppenheimer bullish on ESAB, initiates with an Outperform

Oppenheimer analyst Bryan Blair initiated coverage of ESAB with an Outperform rating and $115 price target, appreciating the company’s solid momentum toward CEO Shyam Kambeyanda’s vision of creating a premier industrial compounder. The firm says ESAB benefits from notable emerging markets leverage, needle-moving opportunities for North American mix enhancement, and the steadily improving scale and profitability of its Gas Equipment platform. While by no means immune to macro risk, Oppenheimer believes ESAB’s continued portfolio evolution and self-help levers outweigh short-cycle demand concerns with recent trading weakness offering an attractive entry point on shares.