Canaccord Adams Initiates Coverage on Baldor Electric (BEZ) with a Buy

October 3, 2008 1:30 PM EDT

Canaccord Adams initiates coverage on Baldor Electric (NYSE: BEZ) with a Buy rating.

Canaccord analyst says, "Recognized for its high-quality and efficient motors, Baldor maintains the leading market position within the North American industrial electric motor market...The growing trend toward green building, which emphasizes energy efficiency, is creating increased demand for energy-efficient motors. In fact, such motors are one of the primary energy-saving technologies utilized in green buildings today, given that buildings consume more than 70% of the electricity load in the US...We conclude Baldor will benefit significantly from the implementation of the 2007 EPAct, which expands the use of a wide range of energy-efficient motors starting in 2010. We estimate that Baldor’s high-efficiency motors, which now represent approximately 20% of total sales, will climb to as much as 50% of the total, driving incremental sales growth and improving margins."

Baldor Electric Company (Baldor) is a marketer, designer, and manufacturer of industrial electric motors, drives, and generators, supplying over 9,500 customers in more than 160 industries.

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