Graco

GGG · NYSE

$81.09+$0.34 (+0.42%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $80.75

GGG analyst rating

BuyConsensus of 6 analysts over the last 12 months. 50% rate it a buy.

Strong buy0
Buy3
Hold3
Underperform0
Sell0

12-month price target · 10 analysts

Average $92.76 (+14.4% upside)

Low: $84.84
Now: $81.09
High: $105.00

Upgrades and downgrades

The latest rating actions, newest first

GGG analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
RBC Capital	Oct 14, 2026	Maintains	Outperform	$96.00 → $95.00	43%
DA Davidson	Jul 27, 2026	Maintains	Neutral	$85.00	49%
RBC Capital	Jul 24, 2026	Maintains	Outperform	$92.00 → $96.00	57%
RBC Capital	Jul 16, 2026	Maintains	Outperform	$95.00 → $92.00	57%
Wolfe Research	Jul 9, 2026	Downgrade	Outperform → Peer Perform	—	80%
DA Davidson	Apr 27, 2026	Maintains	Neutral	$85.00	49%
Baird	Apr 24, 2026	Maintains	Neutral	$96.00 → $92.00	57%
DA Davidson	Feb 2, 2026	Maintains	Neutral	$85.00	49%
Jefferies	Jan 28, 2026	Maintains	Buy	$100.00 → $105.00	34%
RBC Capital	Jan 28, 2026	Maintains	Outperform	$97.00 → $100.00	57%

The case for and against

Updated Oct 14, 2026

Bull case

Graco is supported by a high-quality business model built on short-cycle fluid-handling, coatings, and adhesive equipment, with broad exposure to industrial, automotive, construction, and semiconductor demand that helps diversify results across its three segments. Even though 2Q26 organic sales slipped 1%, bookings rose 5% year over year and 14% over the 6-week period, backlog increased 28% year to date, and 3Q26 revenue guidance of $580 million to $600 million signals meaningfully better near-term visibility. Its appeal is reinforced by strong margins and cash generation, including a 29.6% adjusted operating margin in 2Q26, $161 million of free cash flow, a net cash balance sheet, disciplined pricing, and an accretive M&A pipeline such as Valco Melton.

Bear case

Graco is facing a negative setup because its core businesses are showing weak organic momentum, with 2Q26 organic sales down 1% and Industrial organic sales down 3% as project timing delayed powder coatings shipments and bookings fell 2% before only partially rebounding. Tariff-related support is masking softer fundamentals: the company booked $9 million of tariff refunds in 2Q26 versus $14 million of tariff headwinds during 2025, while 1Q26 tariffs lifted product costs by $7 million and pushed gross margin down 60 bps to 52.0%. With China representing 6% of sales, cyclical exposure to construction, auto, and industrial markets, and backlog offering limited visibility in short-cycle businesses, margins and earnings remain vulnerable if economic activity or trade conditions weaken further.

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