DA Davidson initiated coverage of ESAB with a Buy rating and $130 price target. The firm is positive on the company's structurally higher EBITDA margin, accretion from the Eddyfi acquisition, and upside optionality around a rebounding industrial cycle, including increased Eurozone defense spending, the analyst tells investors in a research note. These provide a constructive backdrop for the shares, even though the initial M&A dilution impact on 2026 estimates could present near-term volatility, the firm added.
