NDR Takeaways: Strong Grid Test Outlook, Submarine Growth, UUVs, Aero Volume + Price, M&A Accretion, Business Transformation

研报英文原文证据摘录

NDR Takeaways: Strong Grid Test Outlook, Submarine Growth, UUVs, Aero Volume + Price, M&A Accretion, Business Transformation

Deutsche Bank

Research

Rating Company Date

Buy ESCO Technologies 29 June 2026

North America Reuters Bloomberg Rating Buy

United States ESE.N ESE US Price target (USD) 400.00 Price at 26 Jun 26 339.88

52-week range 354.90 – 185.15

Industrials

Aerospace & Defense Valuation & Risks

Electronics

NDR Takeaways: Strong Grid Test Outlook,

Submarine Growth, UUVs, Aero Volume + ScottResearchDeuschleAnalyst

Price, M&A Accretion, Business +1-212-250-2014

Transformation SamResearchDesai,AssociateCFA

+1-212-250-9761

We hosted ESCO’s senior management team for an NDR in NYC last week. This

note covers key highlights from our time with management. Key discussion points

included the residual commercial aero LTA repricing opportunity, the Navy

growth story across submarines, surface ships, and UUVs, the strong growth

outlook for the utility business, how the AI datacenter buildout impacts the utility

business, strength in the condition monitoring market, the outlook for the

renewables business, the cost synergy opportunity associated with the Megger

acquisition, end-market growth trends across the Test business, and much more.

We walked away from our time with management with incremental confidence in

the outlook for growth and margin expansion across all three segments, as well

as in the opportunity for positive estimate revisions. We reiterate our Buy rating

and $400 target price.

Background on ESCO Technologies

ESCO Technologies is a specialized industrial technology company whose

portfolio is increasingly concentrated in two structurally attractive markets: grid

reliability and aerospace/defense. The company operates through three