Mettler-Toledo International (MTD) soared to the top of the S&P 500 today after beating earnings forecasts and offering upbeat guidance.
Mettler-Toledo gained 6.7% to $462.67 today, while the S&P 500 rose 0.7% to 2,297.42.
Wells Fargo analystsTim Evans andSara Silverman call it “another very strong quarter” for Mettler-Toledo but contend its too expensive to be buying now:
Mettler-Toledoreported a strong revenue and EPS beat driven by broad strength across the portfolio as well as a benefit from ongoing operational initiatives contributing to the bottom line. The company also raised 2017 revenue and EPS guidance on stronger organic growth as well as a benefit on the bottom line from the new FASB accounting rule for stock options, partially offset by stronger FX headwinds.Mettler-Toledo continues to be the most consistent performer in our coverage universe–a factor for which investors have been willing to pay a premium multiple. We have admittedly been wrong to sit on the sidelines, and Mettler-Toledo’s continued execution in the face of choppy end markets makes us acutely aware of our error. That stated, the stock’s near-peak multiple continues to keep us from jumping in.
Mettler-Toledo’s market capitalization rose to $12.1 billion today from $11.4 billion yesterday.