12:57 PM EST, 11/13/2024 (MT Newswires) -- Ingersoll Rand ( IR ) has a strong growth correlation with industrial production and is expected to benefit from a recovering market and organic order growth improving in Q3, UBS Securities said in a note emailed Wednesday.

"We see continued acyclical growth from the company's tried and tested acquisition strategy (over 50 acquisitions in the last 4.5 years), with 10% market share in a very fragmented market and plenty of deals in the pipeline," the firm added.

UBS said it expects Ingersoll's earnings per share to reach $4.20 by 2026, driven by consistent demand for its products and services, effective demand generation efforts, and strong execution through the "IRX" framework.

Although the company's acquisitions need to be larger to make a significant impact as the company grows, future acquisitions are expected to be smaller, supporting ongoing balance sheet stability, UBS added.

UBS assumed coverage of Ingersoll with a buy rating and a $124 price target.

Price: 105.08, Change: +0.85, Percent Change: +0.82