Darren Sissons Mettler-Toledo International Inc MTD-N TOP PICK Dec 23, 2024

MTD has a strong long-term performance track record and is now trading at 30x times' Forward P/E. In the 1Q, MTD’s revenue grew 3% to $929M (grew 7% on the constant currency), beating estimates of $921M and EPS was $8.69 beating estimates of $8.61. The guidance was quite weak, however, as management expects revenue growth to slow down to 3% on a constant currency basis for Q2 and around 5% for 2023. Overall, the company has executed really well, by consistently growing its top-line organically, while repurchasing shares aggressively over the years, creating shareholder value (shares compounded around 20% annualized in the last ten years). We think the current outlook is understandable due to the challenging macro headwinds. However, it is not cheap, and the guidance may temper gains this year. We think one can start buying slowly if it drifts lower over the next few months, in the low $1,300 range. 
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