SPX Corporation (SPXC) PT Raised to $47 at Oppenheimer Supported by Replacement Weighted Revenue

Oppenheimer analyst Bryan Blair raised the price target on SPX Corporation (NYSE: SPXC) to $47.00 (from $44.00) while maintaining an Outperform rating, citing resilience, NT pressure, strategic integration of HVAC and D&M acquisition, solid backlog, and stimulus potential.

The analyst stated "We remain confident in SPX's resilient operating trends, supported by its replacement weighted revenue profile, solid Transformers backlog (accompanied by strong execution), and continued integration of strategic HVAC and D&M acquisitions. We believe 2Q was less challenging for SPX than most industrials (with potential upside vs. our estimated -26% y/y EPS decline), anticipate stabilizing top- and bottom-line trends during 2H, and expect a solid earnings/cash flow rebound in 2021. Non-res (~30% total exposure) remains a watch item, although we expect deterioration in new construction volume to be substantially offset by stable/positive replacement demand, self-help, and inorganic investment opportunities going forward. All in, we believe SPX has the organic/inorganic levers in place to resume its climb to $3.00-plus EPS and continues to trade at very attractive valuation."

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