Mettler-Toledo Earnings: Relentless Headwinds Hit Revenue, Limiting Near-Term Growth Prospects

We are retaining our $880 fair value estimate for narrow-moat Mettler-Toledo as third-quarter results were about as we anticipated. Given persistent headwinds to top-line growth, including weaker demand in China and broader macroeconomic factors, which we expect to continue in the near term, we have adjusted our forecasts slightly. These changes to our assumptions were largely offset by cash flows generated since our last valuation, resulting in an unchanged fair value estimate. At current prices, the shares appear overvalued.