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IDEX stock maintains buy rating from TD Cowen following 1Q orders beat

EditorIsmeta Mujdragic
Published 07/09/2024, 11:07 AM

On Tuesday, TD Cowen maintained a Buy rating on IDEX Corp (NYSE:IEX) with a steady price target of $240.00. The firm's stance comes despite recent disappointments in short cycle industrial data points and commentary from key healthcare customers, which could make reaching the upper end of the company's current guidance a challenge.

The analyst from TD Cowen noted that IDEX's first-quarter orders surpassed their model predictions, suggesting that the lower end of the guidance range is likely to remain unchanged. This assessment implies that the company's previously set guidance range can be sustained without adjustments.

Furthermore, the firm emphasized that the existing backlog of orders for IDEX should be sufficient to support the financial estimates set for the fiscal year 2025. The backlog is seen as a critical factor in underpinning the company’s performance and helping to meet long-term financial targets.

TD Cowen's reiteration of the Buy rating and price target reflects a continued positive outlook on IDEX Corp's stock, despite the noted industry headwinds. The firm's analysis suggests confidence in the company's capacity to meet its financial objectives in the coming years.

InvestingPro Insights

Amidst the scrutiny of IDEX Corp's (NYSE:IEX) ability to meet its financial targets, InvestingPro data and tips provide a broader context for evaluating the company's performance and potential. With a market capitalization of $14.72 billion and a trailing twelve-month P/E ratio of 27.86, the company shows signs of stability in its valuation metrics. Moreover, the gross profit margin stands at a solid 44.16%, reflecting the company's ability to maintain profitability despite industry headwinds.

Key InvestingPro Tips highlight that IDEX Corp has a history of maintaining its dividend payouts, with dividend growth over the last twelve months reaching 15.0%, and it has raised its dividend for 14 consecutive years. Additionally, the company's liquid assets surpass its short-term obligations, indicating a strong liquidity position. These factors contribute to the company's resilience and may reassure investors looking for steady income and financial health.

Despite recent market volatility, IDEX has been trading with low price volatility, which could appeal to investors seeking stability in their portfolio. However, it's worth noting that the stock is trading near its 52-week low, with a price 79.16% of its 52-week high, which may indicate a potential buying opportunity for long-term investors. With seven analysts having revised their earnings downwards for the upcoming period, a cautious approach may be warranted.

For those considering an investment in IDEX Corp, additional insights and metrics are available on InvestingPro. Subscribers can access a total of 12 InvestingPro Tips to further inform their investment decisions. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription for more in-depth analysis and data.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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