JPMorgan has reduced its price target on ESAB (NYSE: ESAB) to $130.00 from $138.00 while leaving its rating on the industrial equipment maker at Overweight. The bank linked the change primarily to the company’s announced preliminary results and the pending acquisition of Eddyfi, which analysts expect to have a near-term impact on earnings and leverage.
The adjustment follows specific estimates from JPMorgan analyst Tami Zakaria that the Eddyfi purchase will be approximately 6 cents dilutive to ESAB’s earnings in 2026. JPMorgan projects the deal will shift to being less than 5 cents accretive in 2027 as integration and synergies progress.
Alongside the short-term earnings dilution, JPMorgan highlighted concern about ESAB’s leverage profile. The bank anticipates leverage will remain at about 3x or higher through early 2027, a level it said could constrain valuation multiples in the near term. The firm also called attention to the effective acquisition multiple on Eddyfi - roughly 14.5x when synergies are included - and characterized that valuation as unfavorable when compared with analogous transactions in the sector.
JPMorgan described ESAB’s first-quarter organic growth outlook as "flattish," noting that the company faces relatively easy year-over-year comparisons. Given that starting point, the bank termed full-year 2026 guidance a "show-me story," saying the company would need material acceleration in organic growth after the first quarter to meet guidance expectations.
JPMorgan’s new price target is built on a 21x forward price-to-earnings multiple and about a 14x EV/EBITDA multiple. The firm noted these multiples sit roughly 1-2x above current market valuations and argued they are justified by what it called ESAB’s "industrial growth-compounding qualities" and the anticipated path to bringing leverage below 3x within 12 months after closing the Eddyfi deal.
The transaction itself is sizable: ESAB has agreed to acquire Eddyfi Technologies for $1.45 billion, with the companies expecting the deal to close in mid-2026. Financing for the purchase will be a mix of cash, debt, and $318 million in committed equity. By 2026, Eddyfi is expected to generate around $270 million in revenue and about $80 million in adjusted EBITDA; with synergies, that adjusted EBITDA figure could rise to roughly $100 million.
Market reactions and analyst responses to ESAB’s recent disclosure have been mixed. Oppenheimer raised its price target to $148 and maintained an Outperform rating, while Stifel reiterated a Buy rating and set a target of $143. Both firms left bullish stances in place despite investor sensitivity to ESAB’s recent earnings report.
On the shareholder returns front, ESAB declared a quarterly cash dividend of $0.10 per share. That dividend is payable on January 16, 2026, to holders of record as of December 31, 2025.
For investors seeking deeper detail on ESAB’s balance sheet, valuation and peer comparisons, a Pro Research Report covering more than 1,400 U.S. equities is available that provides metrics and analysis on debt structure, acquisition assumptions, and peer benchmarking.
JPMorgan’s update frames ESAB’s near-term outlook around three primary moving parts: the integration and near-term earnings impact of the Eddyfi acquisition, a leverage profile that may keep multiples muted until it improves, and organic growth performance in early 2026 that will determine whether the company can meet full-year guidance without additional upside later in the year.