UPDATE: Nomura Securities Upgrades SPX Corp. (SPW) to Buy, Says Gardner Denver (GDI) Deal Manageable
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Price: $77.95 -0.76%
Rating Summary:
7 Buy, 8 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
7 Buy, 8 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade SPW Now!
(Updated - December 14, 2012 8:16 AM EST)
Nomura Securities upgraded SPX Corp. (NYSE: SPW) from Neutral to Buy and boosted its price target from $69 to $80 saying an acquisition of Gardner Denver (GDI) is manageable and risk/reward is attractive.
Analyst Shannon O'Callaghan comments, "SPX has sold off on high volume this week, as we think news of a potential acquisition of Gardner Denver (GDI) has disappointed investors who have been attracted to the company's path of divestitures, deleveraging, and buyback. We were not expecting a large deal either and the outcome remains unclear, but we view the risk/reward as favorable. Based on our understanding of SPW's credit covenants, we think the company may be able to acquire GDI within its 3.5x leverage covenant. Given the uncertainty of the outcome, we are basing our new target price on a 50/50 probability of these two estimates and setting our target at $80, based on 14x $5.70 of EPS (flow peer group median multiple). FY12E EPS at $3.44; FY13E EPS at $4.95."
For an analyst ratings summary and ratings history on SPX Corp. click here. For more ratings news on SPX Corp. click here.
Shares of SPX Corp. closed at $60.86 yesterday, with a 52 week range of $56.31-$79.42.
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Nomura Securities upgraded SPX Corp. (NYSE: SPW) from Neutral to Buy and boosted its price target from $69 to $80 saying an acquisition of Gardner Denver (GDI) is manageable and risk/reward is attractive.
Analyst Shannon O'Callaghan comments, "SPX has sold off on high volume this week, as we think news of a potential acquisition of Gardner Denver (GDI) has disappointed investors who have been attracted to the company's path of divestitures, deleveraging, and buyback. We were not expecting a large deal either and the outcome remains unclear, but we view the risk/reward as favorable. Based on our understanding of SPW's credit covenants, we think the company may be able to acquire GDI within its 3.5x leverage covenant. Given the uncertainty of the outcome, we are basing our new target price on a 50/50 probability of these two estimates and setting our target at $80, based on 14x $5.70 of EPS (flow peer group median multiple). FY12E EPS at $3.44; FY13E EPS at $4.95."
For an analyst ratings summary and ratings history on SPX Corp. click here. For more ratings news on SPX Corp. click here.
Shares of SPX Corp. closed at $60.86 yesterday, with a 52 week range of $56.31-$79.42.
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