KeyBanc Downgrades Gardner Denver (GDI) to Hold; Lowers 2009-10 Estimates

June 5, 2009 9:08 AM EDT

KeyBanc downgrades Gardner Denver (NYSE: GDI) from Buy to Hold.

KeyBanc analyst says, "We continue to view the long-term story at GDI favorably, as the Company has benefited from management changes and a sharpened focus on cost....Moreover, we believe that management is positioning the Company well to better capture aftermarket opportunities through product redesigns, which should add a stabilizing factor to demand and bolster profitability mix. That said, amid what we believe is a solid execution story over the long term, near-term demand fundamentals remain a headwind. In addition to a weak outlook for the domestic natural gas production environment, we believe further deterioration in European industrial demand and markets for Engineered Products (particularly OEM and engineered packages) present near-term earnings risk. As a result, we are reducing our 2009E to $2.30 from $2.35 and 2010E to $2.05 from $2.30...While we would likely revisit GDI shares upon a pullback or an improvement in demand fundamentals (particularly in Engineered Products), we believe a patient approach is warranted in the current environment and are downgrading GDI shares..."

To see more analyst ratings on GDI Click Here.

Gardner Denver, Inc. (Gardner Denver) designs, manufacturers and markets compressor and vacuum products and fluid transfer products.

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