Stifel increased its price target for Donaldson Company to $95 from $91, maintaining a Hold rating after the filtration systems manufacturer reported fourth-quarter fiscal 2026 results that surpassed expectations.
The company posted adjusted earnings of $1.15 per share on revenue of $1.1 billion for the quarter, exceeding analyst forecasts of $1.13 per share on sales of $1.04 billion. Donaldson’s quarterly sales exceeded $1 billion for the first time in its history, the company said.
Stifel cited strong performance across business segments and ongoing operational momentum as the basis for the upward revision. The brokerage expects sales growth and margin improvements to continue into fiscal 2027, particularly in the Industrial segment, driven by sales leverage and recovery in Power Generation.
For the full fiscal year 2027, analysts project earnings per share of $4.42. Donaldson has raised its dividend for 30 consecutive years, reflecting consistent cash returns to shareholders. The company’s trailing 12-month revenue reached $3.89 billion, up 5.3%, with a return on equity of 28%.
Donaldson’s shares closed at $95.24 on August 26, up $1.98, or 2.12%, following the results and target adjustment.
