Jefferies Starts MSA Safety (MSA) at Hold

Jefferies analyst Saree Boroditsky initiates coverage on MSA Safety (NYSE: MSA) with a Hold rating and a price target of $200.00.

The analyst comments "MSA Safety (Initiate at Hold). MSA is a high-quality industrial company that operates at near 50% gross margins and should compound earnings at a HSD rate, with upside potential from capital deployment. Served end markets are resilient and benefit from secular trends, which support the company's long-term outlook of MSD organic growth through 2028. While MSA has already expanded adj. EBITDA margins by ~950bps from 2014 to 2023, we see further opportunities to expand margins going forward, with management targeting 30-50bps of annual margin expansion. MSA also has the capacity to execute on its acquisition strategy given its conservative balance sheet and solid free cash flow conversion, which can add 13% upside to our 2027 earnings estimate. While we are positive on the long-term view of the company, we believe challenging comps in 2025 due to the anniversary of the Air Force contract ($40m headwind) could create a near-term headwind. We could become more positive on the name post-comps headwind."

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

Shares of MSA Safety closed at $177.78 yesterday.

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