JPMorgan analyst Tomohiko Sano initiates coverage on ESCO Technologies (NYSE: ESE) with a Overweight rating and a price target of $420.00.

The analyst comments: “We initiate coverage of ESCO Technologies (ESE) with an Overweight rating and a Dec. 2027 price target of $420, implying ~33% upside potential from current levels. ESE offers a differentiated industrial profile with three structural growth vectors across aerospace, navy, and power grid modernization, complemented by disciplined M&A. Our site visit to ESCO’s Crissair facility in Valencia, CA reinforced our confidence in operating cadence, delivery discipline, and backlog conversion. With ~9% revenue and ~15% adjusted EPS 10-year CAGRs, we see meaningful value creation potential over the medium to long term.

ESE supplies highly engineered products and systems across Aerospace and Defense, Utility Solutions, and RF Test and Measurement. The company is positioned in high specification, mission critical applications where qualification requirements, reliability, and installed base dynamics support resilient demand and attractive margins. We also view ESE’s track record in bolt-on M&A and the ESCO Operating System as important enablers of repeatable productivity gains and margin durability, supporting a higher quality earnings profile overall.”

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Shares of ESCO Technologies closed at $313.74 yesterday.