Fortune 500, SpaceX, and Data Centers: What Analysts See as the Potential for Brady Stock

88% of Fortune 500 companies use labels, markings, and other identification products from Brady Corporation. Starting with promotional displays and photo calendars, the company has become a supplier of labeling solutions for a wide variety of applications—from laboratory test tubes to the Gemini spacecraft and SpaceX’s Falcon 9 rockets.

Brady is currently benefiting from the construction of data centers, for which demand is driven by the growth of AI, as this requires the labeling of wires and cables. The company estimates its potential market at approximately $14 billion—following its acquisition of the automation business from industrial giant Honeywell. Why analysts see growth potential in Brady’s stock and what risks are associated with the largest deal in its history—read the Oninvest article.

Brady Corporation sells label printers, barcode scanners, supplies, software, warning signs, and safety solutions for industrial settings. Another part of its business is healthcare identification: patient wristbands, lab labels, and sample tracking solutions. Customers then return to purchase supplies for their printers, which, like the printers themselves, drives growth—together, these categories account for just over 40% of Brady’s sales.

According to the company itself, 88% of Fortune 500 companies use its products to identify and transmit information within their organizations. The company has even made its mark in space: its labels and marking elements were used on the Gemini spacecraft in the 1960s, and are now used on SpaceX’s Falcon 9 launch vehicles. In addition, 70% of aircraft worldwide bear Brady identification markings, according to the company.

Brady and its labeling solutions address specific challenges, helping companies improve efficiency. For example, at Airbus Helicopters, Brady implemented printers for labeling two-component formulations with pre-set pot lives. Previously, employees marked them by hand, which led to errors, and the mixtures would harden before they could be used.

And for Royal Lactalis Leerdammer, the manufacturer of Leerdammer cheese and a division of the major dairy company Groupe Lactalis, Brady developed a system that enhances employee safety when operating equipment.

The company’s business began in 1914, when Will Brady founded the W.H. Brady Company, which sold photo calendars and designed advertising displays for stores and ice cream parlors. In 1940, the company found a new niche: creating durable marking labels that would retain their inscriptions on aircraft wiring even at high temperatures. This idea became the foundation for its future growth.

Brady Corporation went public in 1984. The company not only developed various solutions on its own and patented them, but also acquired small companies that complemented its business. For example, in 2012, it acquired Precision Dynamics Corporation for $300 million—a company specializing in wristbands and labels for healthcare facilities. And in 2021, the $173 million acquisition of The Code Corporation added scanner manufacturing to Brady’s portfolio. This enabled the company to offer customers a full cycle of services: from applying identification to tracking it.

With the acquisition of the French company Gravotech, which specializes in equipment for laser or mechanical engraving of parts, in 2024 for €120 million, Brady expanded its capabilities in the industrial sector, where durability is key, and in the branding sector, where product personalization is essential. Danfoss, a Danish equipment manufacturer, collaborated with Gravotech, and the Stella Artois brand used its equipment to engrave beer glasses. Gravotech’s clients include Audi, BMW, Givenchy, and Lancôme.

In 2026, Brady made its largest acquisition to date—it purchased the Productivity Solutions and Services (PSS) division from the aerospace and industrial technology conglomerate Honeywell for $1.4 billion. PSS , with revenue of approximately $1.1 billion in 2025, specializes in mobile computers and portable barcode scanners. Turkish retailer LC Waikiki used Honeywell’s mobile terminals for in-store automation. Japanese pen manufacturer Pilot Ink implemented mobile computers to prevent errors in ink selection. GEPP, a Mexican company that bottles and distributes PepsiCo beverages, worked with Honeywell to optimize its logistics and order fulfillment.

Brady was acquiring a large business—compared to its own—while Honeywell was selling a division that was modest by its standards. “For Honeywell, it’s a small sale; for Brady, it’s a huge step forward,” Barron’s wrote at the time. By way of comparison, Honeywell’s total revenue for fiscal year 2025 was $37.4 billion, while Brady’s was about $1.5 billion.

BNP Paribas analyst Andrew Baskaglia called the sale price undervalued and said it did not reflect the potential for future growth, according to Reuters. The American industrial giant sought to streamline its structure ahead of spinning off its aerospace division into a separate company and to divest itself of non-core business lines as quickly as possible. As a result, Brady gained access to larger corporate clients at an attractive price. Taking the acquisition into account, the company estimates its potential market at approximately $14 billion.

In early September, the company reported its results for fiscal year 2026, which ended on July 31, announcing record annual revenue of $1.66 billion. This represented a 9.8% increase compared to 2025. Adjusted diluted earnings per share (EPS) also reached a record high of $5.29, up 15% from fiscal year 2025.

According to the company, sales of wire-marking products rose by 16% in fiscal year 2026: this growth was driven by demand for marking connection cables for large data centers.

The company presented its forecast for fiscal year 2027: It expects adjusted diluted earnings per share to rise to $6.25–6.75 in 2027, representing an increase of 18.1–27.6% compared to the 2026 figure. Of this, the acquisition of Honeywell PSS is expected to contribute approximately 80 cents to EPS, net of transaction financing costs.

Kit Hausum, an analyst at Northcoast Research, confirmed in a September 3 report (available to the Oninvest editorial team) his “buy” recommendation and a price target of $111 for Brady shares, which is 35.5% above the current market price.

At the same time, Hausum notes the uncertainty surrounding the impact of rising memory prices and the associated increase in prices for products from Honeywell’s acquired businesses. However, he considers management’s forecast in this area to be conservative and expects better results.

Even before the deal closed, Sidoti & Co. analyst Steve Ferazani upgraded Brady Corporation’s stock rating from Neutral to Buy and set a price target of $103 per share, which is 25.7% above the current market price.

Two analysts are covering Brady, and both recommend buying its stock, according to MarketWatch. The average price target is $110, which represents upside potential of about 34% from the closing price on October 16.

This is not intended as individual investment advice.