Update shared on 10 Nov 2025
Fair value Increased 8.83%Analysts have raised their fair value estimate for Novanta from $141.50 to $154.00 per share, citing expectations for stronger future revenue growth and improved profit margins, even though the discount rate is slightly higher.
What's in the News
- Novanta Inc. completed a Composite Units Offering, raising $550 million through the sale of 11,000,000 debt/equity composite units at $50 per unit with a $1.375 discount per security (Key Developments).
- The company provided earnings guidance, projecting fourth quarter 2025 GAAP revenue between $253 million and $257 million, full-year 2025 revenue between $975 million and $979 million, and mid-single digit organic revenue growth for 2026 (Key Developments).
- Novanta increased its equity buyback plan authorization by $200 million, bringing the total authorization to $250 million as of September 18, 2025 (Key Developments).
- A Composite Units Offering was also announced before completion, offering 11,000,000 units (Key Developments).
Valuation Changes
- Fair Value Estimate: Increased from $141.50 to $154.00 per share, reflecting a notable rise in analysts' expectations.
- Discount Rate: Rose slightly from 8.49% to 8.76%.
- Revenue Growth: Projected annual growth rate increased from 5.85% to 7.03%.
- Net Profit Margin: Improved from 11.92% to 13.58%, indicating stronger anticipated profitability.
- Future P/E Ratio: Decreased from 48.09x to 43.38x. This suggests a more attractive valuation relative to expected earnings.
Disclaimer
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