FBR Capital Maintains a 'Market Perform' on Pentair (PNR); Solid Operating Leverage Drives 1Q Upside
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Price: $64.50 -2.51%
Rating Summary:
17 Buy, 15 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 18 | New: 20
Rating Summary:
17 Buy, 15 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 18 | New: 20
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FBR Capital maintains a 'Market Perform' on Pentair (NYSE: PNR), PT $41.
FBR analyst says, "Revenues of $790 million were 5% ahead of our expectations with 20% organic growth in TP (33% of revenues) a key source of the upside surprise. Continued increase in capital spending with Pentair customers in industrial and infrastructure markets is driving upside at TP. Pricing appears to be improving, where even as the price-cost gap was negative 50 bps during the quarter, selling prices were up 40 bps YOY, and management anticipates price-cost turning favorable in 3Q. Commentary suggests the pending acquisition of Norit’s CPT business is on track, with the acquisition providing an additional $0.03 upside to full-year operating earnings. With regard to the shares, we like Pentair’s aggressive cost-reduction actions, which should help achieve its ambitious goal of $3.00 in EPS as revenues recover to the previous peak of $3.4 billion. However, the outlook in key Water markets in residential and municipal remains tepid. We are modestly raising our 2011–2012 estimates from $2.35/$2.75 to $2.45/$2.85."
For more ratings news on Pentair click here and for the rating history of Pentair click here.
Shares of Pentair closed at $39.61 yesterday.
FBR analyst says, "Revenues of $790 million were 5% ahead of our expectations with 20% organic growth in TP (33% of revenues) a key source of the upside surprise. Continued increase in capital spending with Pentair customers in industrial and infrastructure markets is driving upside at TP. Pricing appears to be improving, where even as the price-cost gap was negative 50 bps during the quarter, selling prices were up 40 bps YOY, and management anticipates price-cost turning favorable in 3Q. Commentary suggests the pending acquisition of Norit’s CPT business is on track, with the acquisition providing an additional $0.03 upside to full-year operating earnings. With regard to the shares, we like Pentair’s aggressive cost-reduction actions, which should help achieve its ambitious goal of $3.00 in EPS as revenues recover to the previous peak of $3.4 billion. However, the outlook in key Water markets in residential and municipal remains tepid. We are modestly raising our 2011–2012 estimates from $2.35/$2.75 to $2.45/$2.85."
For more ratings news on Pentair click here and for the rating history of Pentair click here.
Shares of Pentair closed at $39.61 yesterday.
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