Mettler-Toledo International (MTD) has the most pricing power in the analytical instruments industry, RBC Capital Markets said in a Tuesday note.
A feature that differentiates Mettler-Toledo from some of its peers is its exposure to industries outside of biomedical research and production, which comprise about 45% of its sales, lower than the 60% average among peers, RBC said.
RBC said that while the mix difference didn't drive relative outperformance for Mettler-Toledo's stock during the 2024-2025 period of weakness in biomedical research, this trend now appears to be reversing.
Macro conditions support an acceleration in the company's organic sales growth in H2 and beyond, but this boost does not guarantee upside relative to companies more exposed to any biomedical research inflection, the firm said.
RBC initiated coverage on the stock with a sector perform rating and a $1,515 price target.
Price: 1387.40, Change: -17.74, Percent Change: -1.26
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