Credit Suisse Starts Dover Corp. (DOV) at Outperform

Credit Suisse analyst Guy Hardwick initiates coverage on Dover Corp. (NYSE: DOV) with a Outperform rating and a price target of $171.00.

The analyst comments "We initiate coverage of Dover Corporation with an Outperform rating and a $171 target price. We expect DOV’s portfolio to prove resilient in 2023 and deliver 5% organic revenue growth, $9.00 EPS and a high-20s ROE. DOV has levers to drive EPS upgrades in 2023 by utilizing its FCF through M&A, restructuring, and share repos. DOV’s diversification (17 businesses in five segments) may discourage some investors, but we argue the portfolio merits greater investor attention. DOV businesses generally share similar traits: high margins, strong ROC, high market share of a small TAM, and limited global competitors; we cite as examples Belvac (aluminum beverage can manufacturing equipment), SWEP (heat exchangers), Markem-Imaje (ID coding systems), and MAAG (polymer process pumps). Recent M&A has also improved the growth profile in Pumps & Process (DPPS) and Clean Energy & Fueling (DCEF), with acquisitions in cryogenics and LNG. Trading at 15.5x ‘23 consensus EPS and 0.90 relative to the SPX, the stock price discounts LSD-MSD downgrades to consensus ‘23e EPS, which we believe is too negative. CS FY23e EPS is 1% ahead of consensus."

For an analyst ratings summary and ratings history on Dover Corp. click here. For more ratings news on Dover Corp. click here.

Shares of Dover Corp. closed at $137.29 yesterday.

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