Piper Jaffray Reiterates an 'Overweight' on Duoyuan Global Water (DGW), Price Target and Estimates Increased

November 10, 2009 6:58 AM EST

Piper Jaffray & Co. reiterates an Overweight rating on Duoyuan Global Water (NYSE: DGW), price target increased from $45 to $49.

Piper analyst says, "We are reiterating our Overweight rating on DGW shares after the company reported stronger-than-expected 3Q top- and bottom-line results...The stimulus is beginning to positively impact sales, which exceeded our model across each of the company's 3 product segments. We believe government spend for water infrastructure in China will remain strong as we look ahead to 2010...Duoyuan Global Water commenced a national television advertising campaign in 3Q, which is aimed at boosting brand awareness and increase DGW's presence in larger-scale projects. We believe gaining market share in this segment would present a significant new catalyst for DGW shares...In light of the guidance provided, we are modestly increasing our FY10 & FY11 estimates."

To see more analyst ratings on DGW Click Here.

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