Narrow-Moat Mettler-Toledo Has No Problem Maintaining Streak of Margin Gains; Increasing FVE to $710

Narrow-moat Mettler-Toledo had another strong quarter and raised guidance, and growth momentum looks set to continue into 2022, led by the lab business and a recovering industrial segment. We are increasing our fair value estimate to $710 per share from $670, with $20 of the increase due to the time value of money, and an additional $20 from ongoing better-than-expected performance. With shares trading above $1,400 as of Nov. 5, the stock remains materially overvalued, in our view.