Analyst Initiates Buy on ESAB, Citing High-Margin Equipment Shift and Eddyfi Acquisition as Key Drivers of Long-Term EPS and EBITDA Growth

, an analyst from D.A. Davidson, has initiated a new Buy rating on ESAB Corporation (ESAB).

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analyst has given his Buy rating due to a combination of factors, chiefly the company’s accelerating shift toward higher-margin equipment and the earnings power unlocked by the Eddyfi acquisition. ESAB has steadily expanded its equipment portfolio, which now represents a majority of projected sales, and this mix change has already driven meaningful improvement in profitability, with further EBITDA margin gains expected as integration progresses.

While the Eddyfi deal introduces some temporary EPS dilution in 2026, management’s deleveraging plans, anticipated cost synergies, and a full year of contribution are forecast to turn the transaction accretive by 2027, supporting solid EPS and EBITDA growth. On top of this, the analyst sees potential upside from even modest volume increases, particularly if end markets such as European defense, energy infrastructure, and heavy equipment rebound, making the current valuation attractive relative to the company’s long-term earnings trajectory.

In another report released on June 5, Stifel Nicolaus also maintained a Buy rating on the stock with a $141.00 price target.