DA Davidson has reasserted a Buy rating on Ametek Inc. (NYSE: AME) and maintained a $240.00 price target after reviewing the company’s most recent quarterly results. At the time of the note, Ametek was trading at $228.92 with a market capitalization of $52.7 billion.
The research firm said Ametek produced an operational beat of $0.05 versus DA Davidson’s internal model. That outperformance was attributed to stronger-than-expected top-line activity across both the Electronic Instruments Group (EIG) and the Electromechanical Group (EMG).
On a company-wide basis, Ametek reported annual revenue of $7.4 billion, representing growth of 6.63% year-over-year. DA Davidson noted that the EMG segment delivered solid, double-digit organic growth across each of its divisions - a performance the firm said was likely led by the Paragon and automation businesses.
Market data from InvestingPro indicates Ametek trades at a price-to-earnings ratio of 35.58, a level DA Davidson and InvestingPro characterize as high when set against near-term earnings growth expectations. InvestingPro also shows the stock trading near its 52-week high of $233.17, and that analysts covering the company retain a Buy consensus.
Company-specific operational indicators were highlighted in the note. Ametek exited 2025 with a record backlog, and its EIG business returned to positive organic growth in the fourth quarter of 2025. DA Davidson underscored the company’s "best-in-class execution track record over the cycle" and pointed to "attractive/secularly driven end markets" as underpinning its positive view on the shares.
InvestingPro’s valuation work suggests the stock is trading above its Fair Value. The company’s long-standing shareholder policy was also noted: Ametek has maintained dividend payments for 55 consecutive years.
Additional analyst activity followed the quarterly results. Ametek reported a fourth-quarter diluted earnings per share of $2.01, beating the consensus expectation of $1.94, while revenue came in at $2.0 billion versus the $1.95 billion forecast. In response, RBC Capital raised its price target for Ametek to $257 and maintained an Outperform rating after a modest operating beat. TD Cowen also lifted its price target to $260 and kept a Buy rating, pointing to favorable developments in Ametek’s key markets - including aerospace, defense, power, and grid.
RBC described the company’s initial 2026 guidance as "in-line." The combination of an operational beat, raised price targets from multiple brokerages, a record backlog, and a return to positive organic growth in EIG informed the recent wave of analyst commentary.
What this means: DA Davidson’s reiterated Buy rating and $240 target rest on a mixture of recent operational outperformance, segment-level momentum in EMG and EIG, and what the firm sees as durable end-market demand. Valuation metrics indicate the shares trade at a premium to near-term earnings growth expectations, while other brokers have increased targets following the quarter.