Jefferies Remains Bullish on Flowserve (FLS) Following Meeting With Management and Investors
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Price: $77.88 -0.01%
Rating Summary:
14 Buy, 14 Hold, 2 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 10 | Down: 12 | New: 20
Rating Summary:
14 Buy, 14 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 20
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Jefferies is reiterating its Buy rating and $157 price target on shares of Flowserve Corp. (NYSE: FLS) following a meeting with investors and senior management in which the firm hosted.
Management at the meeting was upbeat on its short-cycle businesses and recapturing the prior peak margin, but guarded over pricing in the long-cycle ops.
The firm believes that FLS may have $1 billion in cash on hand by the end of 2012. Due to the CEO repeatedly saying that their ROIC target was 15 percent, the firm anticipates buyback programs being announced in the future.
An analyst at Jefferies comments, "the global process capex cycle is in the early stages and FLS is just beginning to benefit. Recent pullbacks in commodities prices and world events have combined with 1Q11 estimate reductions to weaken the stock. But we continue to believe an earnings acceleration is still a matter of when, not if, given the track record here."
The firm is maintaining its 2011 and 2012 EPS estimates of $7.95 and $10.00.
For more ratings news on Flowserve Corp. click here and for the rating history of Flowserve Corp. click here.
Shares of Flowserve Corp. closed at $106.34 yesterday.
Management at the meeting was upbeat on its short-cycle businesses and recapturing the prior peak margin, but guarded over pricing in the long-cycle ops.
The firm believes that FLS may have $1 billion in cash on hand by the end of 2012. Due to the CEO repeatedly saying that their ROIC target was 15 percent, the firm anticipates buyback programs being announced in the future.
An analyst at Jefferies comments, "the global process capex cycle is in the early stages and FLS is just beginning to benefit. Recent pullbacks in commodities prices and world events have combined with 1Q11 estimate reductions to weaken the stock. But we continue to believe an earnings acceleration is still a matter of when, not if, given the track record here."
The firm is maintaining its 2011 and 2012 EPS estimates of $7.95 and $10.00.
For more ratings news on Flowserve Corp. click here and for the rating history of Flowserve Corp. click here.
Shares of Flowserve Corp. closed at $106.34 yesterday.
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