Hudson Securities Upgrades Gardner Denver Corp. (GDI) to Buy, Strong Market Trends & Solid Q1 Results
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Price: $32.79 --0%
Rating Summary:
11 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
11 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Hudson Securities upgraded shares of Gardner Denver Corp. (NYSE: GDI) to a Buy rating from its previous rating of Neutral and is raising its price target from $81 to $102.
The company reported its Q1 results with an adjusted EPS of $1.15 which was well ahead of the firms estimate of $0.93. Revenue for the quarter increased 26% over the year to $531.9 million with $286.2 million coming from the Industrial products group and $245.6 million coming from Engineered Products group. Operating margin for the quarter rose 510 bps to 16.6%.
GDI raised its 2011 EPS guidance from $4.00-$4.20 to $4.60-$4.70. The company also released its Q2 guidance at $1.15-$1.20. As a result the firm is raisin its 2011 EPS estimate from $4.20 to $4.70 and its 2012 estimate from $4.79 to $5.50.
The firm comments that, "When we downgraded shares of Gardner Denver last October, we did so because the stock was finally trading at a valuation in-line with the other diversified peers that we cover and the relative valuation rationale for recommending shares had gone away. What we did not anticipate was that the drilling environment would remain as strong as it has, or that Gardner Denver would see as dramatic an improvement in its Industrial Products margins."
For more ratings news on Gardner Denver Corp. click here and for the rating history of Gardner Denver Corp. click here.
Shares of Gardner Denver Corp. closed at $79.20 yesterday.
The company reported its Q1 results with an adjusted EPS of $1.15 which was well ahead of the firms estimate of $0.93. Revenue for the quarter increased 26% over the year to $531.9 million with $286.2 million coming from the Industrial products group and $245.6 million coming from Engineered Products group. Operating margin for the quarter rose 510 bps to 16.6%.
GDI raised its 2011 EPS guidance from $4.00-$4.20 to $4.60-$4.70. The company also released its Q2 guidance at $1.15-$1.20. As a result the firm is raisin its 2011 EPS estimate from $4.20 to $4.70 and its 2012 estimate from $4.79 to $5.50.
The firm comments that, "When we downgraded shares of Gardner Denver last October, we did so because the stock was finally trading at a valuation in-line with the other diversified peers that we cover and the relative valuation rationale for recommending shares had gone away. What we did not anticipate was that the drilling environment would remain as strong as it has, or that Gardner Denver would see as dramatic an improvement in its Industrial Products margins."
For more ratings news on Gardner Denver Corp. click here and for the rating history of Gardner Denver Corp. click here.
Shares of Gardner Denver Corp. closed at $79.20 yesterday.
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