Key Takeaways:
- Coverage Reset: AMETEK stock reflects a rating shift after Oppenheimer cut the stock to perform in the last week of January 2026, tightening near-term sentiment.
- Investor Signaling: AMETEK stock absorbed a January 2026 beneficial ownership filing tied to Senior VP Robert Amodei, reinforcing disclosure visibility during a $222 share price period.
- Price Outlook: Based on 6% revenue growth and 27% operating margins, AMETEK stock could reach $254 by 2027 at a 28x earnings multiple.
- Upside Math: From the current $222 price, AMETEK stock implies 14% total upside, translating into about 7% annualized returns over 2 years.
AMETEK (AME) sells electronic instruments and electromechanical devices across industrial, aerospace, and medical end markets, supported by 2 segments and diverse demand.
Just this Wednesday, AMETEK saw a coverage change to perform, shaping expectations after a period of strong execution.
AMETEK delivered about $18 billion in LTM revenue, showing steady demand across process, aerospace, and specialty instrumentation categories.
Operating margins near 27% and operating income around $5 billion highlight strong pricing and cost discipline supporting durable profitability.
Currently, AMETEK trades near 28x earnings at a $222 share price and $50 billion market value, despite upside toward $254.
What the Model Says for AME Stock
We evaluated AMETEK stock using its strong industrial positioning, steady cash returns, and consistent execution across diversified instrumentation end markets.
Using 6.5% annual revenue growth, 26.9% operating margins, and a 27.9x exit multiple, the model points to a $254 target.
That implies 14.2% total upside, or about 7.1% annualized returns over the next 1.9 years, ending at $254.02.
Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for AME stock:
1. Revenue Growth: 6.5%
AMETEK has delivered steady top-line expansion, with 5-year historical revenue growth of 6%, supported by diversified exposure across industrial, aerospace, and automation end markets.
Order flow remains steady across EIG and EMG, supported by aftermarket demand, pricing discipline, and bolt-on acquisitions.
Forward growth is supported by aerospace and automation demand, offset by softer industrial cycles and cautious customer spending.
Therefore, a 6.5% revenue growth assumption reflects durable demand drivers without requiring aggressive volume recovery or end-market acceleration.
2. Operating Margins: 26.9%
AME stock’s operating margins expanded from 23% to 26%, driven by mix improvement and disciplined cost control.
Current margins benefit from higher-value instrumentation, recurring aftermarket revenue, and decentralized operating discipline across acquired businesses.
Margin pressure from wages and integration remains contained through pricing actions and scale efficiencies.
In line with analyst consensus projections, operating margins of 26.9% reflect normalized efficiency without assuming further structural cost compression.
3. Exit P/E Multiple: 27.9x
AMETEK trades at premium valuation levels, supported by consistent earnings growth, strong cash generation, and disciplined capital allocation.
Historically, the stock has traded between roughly 24x and 28x earnings during stable industrial cycles with clear earnings visibility.
Investor caution remains tied to industrial cycle risk, but confidence is supported by diversified exposure and limited balance sheet stress.
Based on street consensus estimates, a 27.9x exit multiple balances quality premium recognition with restrained expectations for multiple expansion.
What Happens If Things Go Better or Worse?
AMETEK’s results hinge on industrial demand, aerospace momentum, and cost control through 2029.
- Low Case: If industrial demand softens and execution tightens, revenue grows around 7.3% and net margins hold near 22.2% → 0.7% annualized return.
- Mid Case: With core end markets steady and pricing intact, revenue growth near 8.1% and net margins improve toward 23.6% → 6.3% annualized return.
- High Case: If aerospace strength and automation orders accelerate, revenue reaches about 8.9% and net margins approach 24.8% → 11.6% annualized return.
The $283 mid-case target price relies on steady execution and margin discipline, not multiple expansion or optimistic sentiment shifts.
How Much Upside Does It Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
