"Jefferies acknowledges Lincoln Electric has 'solid leverage' to an industrial recovery, but the firm argues the cycle is early and increasingly exposed to risk. Consensus growth estimates exceed the company's own guidance, creating a setup where estimates face downward pressure even if Lincoln executes well."
"The stock ran from roughly $174 in April 2025 to a 52-week high of $310 before retreating. It has since dropped 14.9% over the past month and sits 17.7% below its post-earnings filing price."
Jefferies downgraded Lincoln Electric Holdings from Buy to Hold, reducing the price target from $350 to $280. The firm believes the industrial recovery is already priced in, limiting stock upside. Despite solid leverage to recovery, consensus growth estimates exceed company guidance, risking downward pressure. Lincoln Electric reported strong 2025 results with record adjusted EPS of $9.87, but Q4 revenue missed estimates. The stock has dropped 14.9% recently, reflecting concerns over market cyclicality and demand-side tensions.
Read at 24/7 Wall St.
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