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ESE: Aerospace Strength Will Drive Improved Margins in Fiscal 2026

Electrification, Grid Modernization And Digitalization Will Redefine Infrastructure Landscape

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ESE
AnalystConsensusTarget
Not Invested
Published 05 Sep 2024

Update shared on 25 Nov 2025

Fair value Increased 13%
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Analysts have raised their price target for ESCO Technologies from $225 to $255. They cite improved revenue growth projections and higher anticipated profit margins as key drivers for the upward revision.

What's in the News

  • ESCO Technologies has issued earnings guidance for fiscal year 2026, projecting net sales growth of 16% to 20%. This would bring net sales to between $1.27 billion and $1.31 billion (Key Developments).
  • The Aerospace and Defense (A&D) segment is expected to grow 33% to 38%. This includes organic growth of 6% to 8% and Maritime revenue between $230 million and $245 million (Key Developments).
  • The USG segment is anticipated to achieve growth of 4% to 6% in fiscal 2026 (Key Developments).
  • The Test segment is forecast to grow by 3% to 5% over the same period (Key Developments).

Valuation Changes

  • The consensus analyst price target has increased from $225 to $255, reflecting a more optimistic outlook.
  • The discount rate has risen slightly from 8.19% to 8.34%.
  • Revenue growth projections have increased from 9.34% to 11.90%.
  • Net profit margin expectations have improved from 13.25% to 15.64%.
  • The future P/E ratio has decreased modestly from 36.60x to 35.11x.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.