Oppenheimer has upgraded Nordson Corporation (NASDAQ: NDSN) from “Perform” to “Outperform,” setting a price target of $260. This upgrade follows a notably strong fiscal Q2 2025 performance that marks a turning point after eight consecutive quarters of negative organic growth.
🔹 Nordson’s Adhesive Dispensing Systems (ATS) segment is leading the recovery, bolstered by increased demand in precision agriculture. The medical interventional space is also showing signs of improvement, with inventory destocking easing and order volume beginning to rise. Management reports a healthy commercial pipeline driving future expectations.
🔹 Financially, the company exceeded earnings expectations with Q2 2025 EPS of $2.42, above the forecast of $2.36, and revenue hitting $683 million. Growth was fueled by stronger performance in semiconductor markets and a highly successful integration of the Atrion acquisition, which has already outpaced initial projections.
🔹 For Q3 2025, Nordson expects sales between $710 million and $750 million and adjusted EPS in the range of $2.55 to $2.75. While management remains cautious due to trade and tariff uncertainties, a solid order backlog offers strong visibility into the coming months.
💰 Dividend Fundamentals: Nordson has increased its dividend for 61 consecutive years, underscoring its commitment to returning capital to shareholders. The current annualized dividend stands at $3.12 per share, yielding approximately 1.59%. With a payout ratio near 38%, Nordson balances shareholder rewards with reinvestment into growth.