Janney Montgomery Scott Initiates Coverage on Duoyuan Global Water (DGW) with Neutral; Wait For More Attractive Entry

August 4, 2009 8:28 AM EDT

Janney Montgomery Scott initiates coverage on Duoyuan Global Water (NYSE: DGW) with Neutral

Janney analyst says, "We initiate coverage of Duoyuan Global with a NEUTRAL rating and a $30 fair value. The company has operated in China for 20 years, becoming a leader in the design, manufacture, and sale of water and wastewater treatment products. China s increased focus on its water resources comes in response to growing industrialization and urbanization in a country with low per capita supplies and rising pollution. With a daunting task ahead, the Chinese government will attempt to spend its way out of a water crisis, and Duoyuan is positioned to help meet the higher demand for technologically advanced treatment. The Duoyuan story has a unique set of risks, but investor appetite for growth has seemingly outweighed these concerns. Duoyuan's growth remains strong, but we believe the shares, already up over 80% since the IPO, reflect this outlook and would recommend investors await a more attractive entry point."

To see more analyst ratings on DGW Click Here.

Duoyuan Global Water Inc., through its subsidiaries, engages in the manufacture and sale of water treatment equipment in the People's Republic of China.

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