Oppenheimer Reiterates Perform Rating on Nordson (NDSN)

Oppenheimer analyst Christopher Glynn reiterated a Perform rating on Nordson (NASDAQ: NDSN).

The analyst comments "NDSN announced plans to acquire Atrion/ATRI for $460/share (~$800M EV, 20.5x '23 EBITDA; 15x including $14M projected synergies), expected to close within NDSN's FY24/October. Atrion is a market leader in single-use medical infusion and niche cardiovascular technologies, with 2023 sales at $169M/(8)% reflecting OEM inventory adjustments (dd '21 and '22 growth) and $39M EBITDA/23% margin (29% in '22). EBITDA margin has run 32-33% historically, with 2023 impacted by supply chain, long-term growth/capacity investment, underabsorption, and volume/variable cost. ATRI expects hsd '24 growth and progress on margin recovery; NDSN sees clear path to restore margins to low 30%, and we think potentially a bit stronger over time. NDSN anticipates realizing ~$14M synergies within 24 months, including ~$5M public company costs early on—balance from supply chain, production planning/efficiencies, variable cost models (noting plenty of opportunity in operations). Depending on ATRI's pace of internal margin recovery during 2024+, and layering in ~half synergies realization within FY25 pro forma, we anticipate FY25E adjusted EPS accretion could approximate $0.30-0.35 (we assume gradual debt reduction from the initial quarter)."

For an analyst ratings summary and ratings history on Nordson click here. For more ratings news on Nordson click here.

Shares of Nordson closed at $237.94 yesterday.

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