Shares of MSA Safety Inc (NYSE:MSA) have been on the downtrend.
DA Davidson analyst Michael Shlisky initiated coverage with a Buy rating and a price target of $195.
The MSA Safety Thesis: "We analyzed ~5.6M public company calls and presentations to gauge management focus on this topic–the number of calls/presentations in which 'safety; was mentioned nearly doubled between 2019 and 2023," Shlisky wrote in the initiation note.
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MSA Safety has been steadily compounding growth, which "does not seem threatened," the analyst said. The company could deliver a compounded annual growth rate (CAGR) of 8%-10% in earnings through 2028, he added.
The top 10 U.S. fire departments, which are "well-funded," could increase their budgets next year by an estimated 6%, Shlisky stated. The number of US construction workers, who use a wide range of the company's products, is expected to continue rising, he added.
MSA Safety was added to DA Davidson's Best-of-Breed Bison list, which includes the "highest-quality companies, with wide competitive moats, strong long-term value creation potential, and a potential trading discount to long-term intrinsic value," the analyst further wrote.
Price Action: MSA Safety was up at last check Thursday, trading at around $166.66 per share.
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