-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Following AME's Q1 beat, we lift our 12-month target to $260 from $240, valuing shares at 29.5x our 2027 EPS outlook of $8.81 (up $0.20; 2026 EPS outlook lifted to $8.12 from $8.00), above AME's five-year historical multiple average given a strengthening earnings growth trajectory. Notably, AME experienced a Q1 acceleration in demand, highlighted by record orders of $2.2 billion, representing 22% organic growth and leading to a record backlog of $3.87 billion. This growth was broad-based, with sustained strength in Aerospace & Defense and a notable inflection in orders for the more cyclical Process and Power businesses. Profitability also was a positive, as core operating margins expanded by 160 basis points, driven by volume leverage in the Electromechanical Group (EMG). Overall, Q1 results were encouraging though shipment delays stemming from conflict in the Middle East was a modest headwind, indicating that spillover effects could become a bigger headache if instability in the region worsens.