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Brean Capital Upgrades IDEX Corp (IEX) to Buy; Co at 'Inflection Point' in Cycle

January 31, 2014 7:21 AM EST Send to a Friend
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Price: $76.94 -0.21%

Rating Summary:
    4 Buy, 11 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 3 | Down: 4 | New: 7
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Brean Capital upgraded IDEX Corp (NYSE: IEX) from Hold to Buy with a price target of $79.00. Analyst Michael Gaugler thinks the company is at an inflection point in its business cycle.

"Taking nothing away from the company's own efforts to take cost out of the business model (which in all likelihood is as much a contributing factor to organic growth as improving end market conditions), we see signs over the last several quarters of a trend change in the company's organic profile. Most interesting (to us) is the fact that 4Q13 was the first time since 2Q13 that all 3 reporting segments posted positive organic sales growth. This trend, when viewed against the company's own guidance on sales growth and margins, extrapolates out to a continuation of these improving trends at least through 2014. The sales mix, having been largely dominated by acquisition-related contributions in 2011 and most of 2012, then followed by a drop to below 5% for several quarters, has now rebounded, driven almost entirely by organic growth (Exhibit #1). New orders are also showing signs of organic improvement, and at healthy rates," said Gaugler.

For an analyst ratings summary and ratings history on IDEX Corp click here. For more ratings news on IDEX Corp click here.

Shares of IDEX Corp closed at $72.52 yesterday.

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