KeyBanc Upgrades Gardner Denver (GDI) to Buy; Raises Estimates

October 8, 2009 8:06 AM EDT

KeyBanc upgrades Gardner Denver (NYSE: GDI) to Buy. Price target $42.

KeyBanc analyst says, "While industrial markets are still on the front end of a stabilization, we believe current valuation represents a solid entry point based on the long term, structural transformation at GDI. To that end, we view the long-term story favorably, as the Company has benefited from management changes and a sharpened focus on cost. As the Company rationalizes its manufacturing footprint and fully integrates the acquisition of CompAir, we see a clear path to margin expansion in Industrial Products and believe that CEO Barry Pennypacker will achieve his stated target of 14% by 2014 (which would add $1.30-$1.60 in earnings power assuming no recovery in volumes). 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...Maintaining 2009E of $2.12; Raising 2010E to $2.10 (from $1.95)."

To see more analyst ratings on GDI Click Here.

Gardner Denver, Inc. designs, manufactures, and markets compressor and vacuum products, and fluid transfer products primarily in the United States, Europe, Asia, Canada, and Latin America.

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