Barnes Group shares target suggested by Oppenheimer in rating view via Investing.com
On Friday, Oppenheimer revised his outlook on shares of Barnes Group (NYSE: ), a global supplier of advanced products, raising the company’s price target to $48.00, from a previous target of $43.00, while reaffirming an Outperform rating on the stock. . The company based its decision on the sum-of-the-parts approach.
The revised price target takes into account the expected proceeds of $150 million from the issuance of Associated Spring and Hangii, which was completed on April 4, 2024.
Oppenheimer’s analysis suggests Barnes Group’s enterprise value currently trades at about 12.8 times 2025 earnings before interest, taxes, depreciation, and amortization (EBITDA) for its Aerospace division. After accounting for divestiture, this multiple is adjusted to 12.2 times.
Other financial activities are expected to have an impact on the company’s calculations. In particular, the use of a significant part of the free cash flow predicted from the second half of 2024 to 2025, after benefits, in debt reduction. This includes the debt received from the acquisition of MB Aerospace, which closed on August 31, 2023. These actions are expected to reduce the multiple to about 11.6 times.
The company appreciates the growth potential of Barnes Group’s Aerospace division, citing the unit’s strong historical performance. The analyst suggests that the valuation of the Aerospace division could be high, whether it remains part of the total valuation of the parts or is considered as a stand-alone business. The company also notes that current market valuations provide a strong argument that the Industrials segment is actually priced out of the current share price.
Barnes Group’s strategic moves, including the transfer of the balance sheet and the consolidation of the merger resulting from the acquisition of MB Aerospace, are expected to have a positive contribution to the company’s financial profile and overall valuation in the eyes of Oppenheimer.
InvestingPro Insights
Following Oppenheimer’s optimistic view on Barnes Group (NYSE:B), real-time data from InvestingPro provides additional insight into the company’s financial metrics. With a market capitalization of approximately $1.99 billion and a significant price increase of 29.8% over the past six months, Barnes Group has shown strong market performance. The company’s P/E ratio stands at 414.04, but when adjusted for the last twelve months from Q1 2024, it becomes more reasonable at 37.21, indicating strong expectations for future earnings growth.
Among InvestingPro’s tips, it is highlighted that Barnes Group is expected to be profitable this year and maintain dividend payments for 54 years in a row. These factors, combined with the company’s liquid assets that exceed short-term obligations, give an image of financial stability and credibility to investors. However, it should be noted that three analysts have revised their money down in the future, which may be worth noting.
Investors interested in more in-depth analysis can find more Barnes Group InvestingPro Tips by visiting Use coupon code. PRONEWS24 to receive an additional 10% discount on Pro and Pro+ annual or bi-annual subscriptions, and check out the full range of information available, including 5 additional tips that can inform investment decisions.
This article was created with the support of AI and reviewed by an editor. For more information see our T&C.
