KeyBanc Raises Estimates/Price Target on AMETEK (AME) to $59

July 22, 2008 9:37 AM EDT

KeyBanc increases their price target on AMETEK (NYSE: AME) from $55 to $59 reiterates their Buy rating following the company’s solid 2Q results and outlook. The company reported Q2 EPS of $0.61, which was 4 cents better than consensus, and raised its 2008 guidance from $2.42-$2.47 to $2.50-$2.54.

The firm believes that the company’s increased guidance is conservative as "solid order growth, strong key end markets, price realizations are more than offsetting raw material inflation, benefits from low-cost sourcing initiatives and systematic migrations to low-cost facilities all represent meaningful tailwinds for AME in 2008."

Therefore, KeyBanc increases their 2008 EPS estimate from $2.45 to $2.52 and raises their 2009 EPS estimate from $2.90 to $2.98.

Moreover, the firm said, "AME remains one of our favorite ideas among our small-mid cap names, as we believe it remains well positioned to generate above average core growth due to solid execution of its differentiated business model, low-cost manufacturing strategy and exposure to favorable end markets, including late cycle aerospace and power. Additionally, we believe AME possesses strong free cash flow, a solid acquisition track record and sound management team."

AMETEK, Inc. manufactures and markets electronic instruments and electromechanical devices in North America, Europe, Asia, and South America.

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