Redburn has initiated a Sell rating on Mettler-Toledo, a precision-instrument maker, citing a valuation of 27 times its 2027 expected earnings, which it believes outpaces growth. The brokerage has set a price target of $1,200, implying a 15% downside from the current share price of $1,405.
Redburn's forecast for Mettler-Toledo includes revenue projections of $4.03 billion in 2025, $4.25 billion in 2026, and $4.44 billion in 2027, with a medium-term group revenue growth rate of 4.8%. The brokerage expects adjusted diluted earnings per share (EPS) to reach $42.73 in 2025, $47.29 in 2026, and $51.40 in 2027. However, Redburn's estimates remain 1%–3% below consensus on an adjusted EPS basis for the 2027–2029 period.
The brokerage anticipates adjusted EBITA margins to improve gradually, reaching 31.4% by 2029, with a return on invested capital (ROIC) of about 28%. Buybacks are expected to contribute roughly 300 basis points to EPS growth.
Mettler-Toledo's segments include laboratory operations, which account for 56% of revenue and are expected to grow around 3%–4% annually. The industrial segment, representing 39% of revenue, is projected to deliver a 3.9% revenue compound annual growth rate (CAGR) from 2026 to 2029. Process analytical technology (PAT) is estimated to be growing at about 13%. China exposure accounts for 16% of group revenue, compared with a 10% peer average. Service revenue represented about 25% of group revenue, up from 23% in 2023.
