TD Cowen has raised its price target on Ametek Inc. (NYSE: AME) to $260.00 from $230.00 and kept a Buy recommendation on the stock. The new target implies about a 14% potential upside from Ametek's recent trade around $228.92, which is close to the company's 52-week high of $229.03.
The brokerage firm pointed to continued strength in several of Ametek's end markets as a driver of its more constructive view. Aerospace and defense, along with power and grid, were identified as areas showing sustained momentum. TD Cowen also flagged improvements in the company's medical and automation businesses, noting that those segments are advancing against easier comparative periods.
TD Cowen described capital deployment as "a likely accelerator of performance," citing Ametek's low leverage and available capacity to act. The firm noted that leverage stands below 1x and that the company has roughly $5 billion of deployment capacity. Complementing this, InvestingPro data referenced in the analysis lists a debt-to-equity ratio of 0.26 and indicates that Ametek generates cash flows sufficient to cover interest expenses. InvestingPro assigns Ametek an overall financial health rating of "GOOD" with a score of 2.98.
Operationally, the analyst emphasized that Ametek's organic revenue growth has turned positive on both one-year and two-year stack measurements. TD Cowen expects further acceleration in that revenue trend into 2026. The firm also observed that order growth is currently at its strongest level since 2022, a development that underpins the more optimistic outlook for the precision instruments manufacturer.
In earnings news, Ametek reported fourth-quarter 2025 results that beat consensus expectations. Diluted earnings per share came in at $2.01, above the anticipated $1.94. Revenue for the quarter reached $2.00 billion, compared with forecasts of $1.95 billion. Despite the top- and bottom-line beats, the company's shares experienced a pre-market decline following the announcement, reflecting measured investor reaction.
Context and implications
TD Cowen's target increase and maintained Buy rating hinge on multiple, explicit elements: steady end-market demand in aerospace and defense and power and grid, improving performance in medical and automation versus easier year-over-year comparisons, stronger order intake, and the potential for capital deployment to amplify results given a conservative leverage position.
These factors collectively form the basis for the firm's revised valuation and the expectation of further revenue momentum into 2026.