Idex Raises Full-Year Guidance Following Strong Third Quarter; Increasing Fair Value Estimate

Narrow-moat-rated Idex delivered strong third-quarter results, featuring a 20% year-over-year increase in adjusted EPS, from $1.79 to $2.14. Management raised its full-year 2022 guidance range and now expects organic sales growth of around 12% (up from 10%) and adjusted EPS of $8.04-$8.09 (up from $7.88-$7.98). We’ve increased our fair value estimate to $229 from $222, which reflects the firm’s strong execution, our slightly more optimistic near-term revenue growth and operating margin projections, and time value of money. We see the name as appropriately valued at current levels, with shares trading in 3-star territory.