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Valued at a market cap of $26.4 billion, Mettler-Toledo International Inc. (MTD) operates in the precision instruments sector and specializes in high-precision weighing and analytical instruments. It serves diverse industries worldwide, providing laboratory, industrial, and retail weighing solutions, as well as in-line measurement systems for production processes.
Shares of MTD have underperformed the broader market over the last year. The stock has gained 14.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 32.6%. In 2024, the stock has rallied 3.2%, compared to SPX's 26.5% gains on a YTD basis.
Narrowing the focus, MTD outpaced the Health Care Select Sector SPDR Fund (XLV). The exchange-traded fund has gained 13.7% over the past year. However, the ETF’s 8.1% gains in 2024 surpasses the stock’s returns over the same time period.
On Nov. 7, Mettler-Toledo reported its Q3 results, with shares dropping over 7% in the next trading session. The company delivered adjusted earnings of $10.21 per share, exceeding Wall Street's $10 estimate and revenue of $954.5 million, topping forecasts of $941.9 million. However, the stock declined after the company issued a Q4 adjusted EPS guidance of $11.63-$11.78, below the consensus estimate of $11.88.
For the current fiscal year, ending in December, analysts expect MTD’s EPS to grow 6.3% to $40.42 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing on another occasion.
Among the ten analysts covering MTD stock, the consensus rating is a “Hold.” That’s based on one “Strong Buy” rating, seven “Holds,” one “Moderate Sell,” and one “Strong Sell.”
This consensus has been consistent over the past months.
On Nov. 11, Stifel Financial Corp. (SF) analyst Daniel Arias lowered Mettler-Toledo's price target to $1,450 from $1,550 while maintaining a “Buy” rating. He described Q3 as "generally solid," noting management's 2025 outlook projects 3% organic growth and 4%-5% EPS growth. Despite estimate revisions and a recent decline, Arias highlighted that MTD shares still trade at a historical average premium compared to peers.
The mean price target of $1335 represents a 6.7% premium to MTD’s current price levels. The Street-high price target of $1500 suggests an upside potential of 19.9%.
