Canaccord Genuity Morning Coffee on Pentair (PNR): Cleaning Things Up
Tweet
Share
E-mailGet Alerts PNR Hot Sheet
Price: $64.40 +0.97%
Rating Summary:
17 Buy, 15 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
17 Buy, 15 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
Canaccord Genuity Morning Coffee on Pentair (NYSE: PNR): Cleaning things up.
Canaccord analyst says, "Pentair announced its acquisition of European-based Clean Process Technologies for $705 million from Norit (Doughty Hanson Private Equity) in a deal that will be funded through a combination of cash on hand, drawdown on its revolver and longer-term debt. Management anticipates $0.15 of earnings dilution in 2011 ($0.03 accretive ex step-up charges and closing costs) and the transaction is expected to be accretive by $0.15-0.20 in 2012 with revenue synergies of $20 million expected by 2014. Canaccord Genuity Sustainability Analyst John Quealy likes the acquisition, as he believes it makes strategic sense, expands Pentair’s geographic footprint in water (including important markets in Asia/Latin America) while rounding out the portfolio with recurring revenue-based capabilities in desal, potable, process and wastewater. Risk/reward appears balanced in his view and he notes that Clean Process has a demonstrated history of innovation, with a variety of solutions ranging from large-scale to innovative point-of-use purification systems. While he remains neutral on the stock, he is bumping his estimates for the company and now sees 2011 earnings of $2.35 per share on revenue of $3.4 billion (excluding transaction costs), up from $2.32 on $3.2 billion and $2.77 on $3.7 billion in 2012, up from $2.60 on $3.3 billion."
Canaccord analyst says, "Pentair announced its acquisition of European-based Clean Process Technologies for $705 million from Norit (Doughty Hanson Private Equity) in a deal that will be funded through a combination of cash on hand, drawdown on its revolver and longer-term debt. Management anticipates $0.15 of earnings dilution in 2011 ($0.03 accretive ex step-up charges and closing costs) and the transaction is expected to be accretive by $0.15-0.20 in 2012 with revenue synergies of $20 million expected by 2014. Canaccord Genuity Sustainability Analyst John Quealy likes the acquisition, as he believes it makes strategic sense, expands Pentair’s geographic footprint in water (including important markets in Asia/Latin America) while rounding out the portfolio with recurring revenue-based capabilities in desal, potable, process and wastewater. Risk/reward appears balanced in his view and he notes that Clean Process has a demonstrated history of innovation, with a variety of solutions ranging from large-scale to innovative point-of-use purification systems. While he remains neutral on the stock, he is bumping his estimates for the company and now sees 2011 earnings of $2.35 per share on revenue of $3.4 billion (excluding transaction costs), up from $2.32 on $3.2 billion and $2.77 on $3.7 billion in 2012, up from $2.60 on $3.3 billion."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
- Investing.com’s stocks of the week
- Advance Auto Parts (AAP) PT Lowered to $43 at Truist Securities
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
