Lincoln Electric (LECO) is pursuing a multi-year strategy to become more cost competitive by building manufacturing facilities in Eastern Europe, India, China and SE Asia. The company is using acquisitions to expand its manufacturing capabilities, broaden distribution networks and access growth markets.
Also, Lincoln Electric is implementing various cost-control measures to align with the current demand. Though the company is currently witnessing weak demand across its markets, we believe LECO will post strong growth on an economic recovery, boosted by its investments in emerging markets.
Moreover, the company has a strong financial position. LECO recently increased its dividend by 3.7%. We are upgrading the rating on Lincoln Electric stock from Neutral to Outperform.Zacks Investment Research
