Update shared on 26 Nov 2025
Narrative Update on Novanta: Analyst Price Target Change
Analysts have maintained Novanta's fair value estimate at $154. They cited improved profitability metrics, which offset slight adjustments in the discount rate and growth projections.
What's in the News
- Novanta completed a $550 million composite units offering, issuing 11 million debt/equity units at $50 each (Key Developments).
- The company expects to use net proceeds from the offering to strengthen its balance sheet, fund potential acquisitions and investments, repay debt, and support general corporate purposes (Key Developments).
- New earnings guidance projects Q4 2025 revenue of $253 to $257 million, full-year 2025 revenue of $975 to $979 million, and mid-single digit organic revenue growth in 2026 (Key Developments).
- The equity buyback plan was increased by $200 million, bringing total authorization to $250 million (Key Developments).
Valuation Changes
- Fair Value Estimate remains unchanged at $154.
- Discount Rate decreased slightly from 8.76% to 8.74%.
- Revenue Growth projection is stable at approximately 7.03%.
- Net Profit Margin has increased from 13.58% to 15.08%.
- Future P/E ratio has fallen from 43.38x to 39.04x.
Disclaimer
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