Nomura Securities Maintains a 'Buy' on Dover Corp. (DOV); Clarifying Patent Infringement
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Price: $207.07 +0.20%
Rating Summary:
19 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
19 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Buy' on Dover Corp. (NYSE: DOV), PT $81.
Nomura analyst, Shannon O’Callaghan, We’ve started getting questions to clarify recent patent infringement news as it relates to Dover’s Knowles MEMS microphone business and Analog Devices (NYSE: ADI). The case applies only to Knowles MEMS microphone imports into the US (we estimate 5% of Knowles sales, <1% of Dover) and relates not to core MEMS microphone IP but rather to a manufacturing process that Knowles no longer uses. In short, we see minimal impact to Knowles. We continue to believe Knowles has a strong technological and scale advantage on the competition that it can leverage through its internal sales as well as licensing technology to competitors to be available as second sources. We do not think Dover’s premium growth drivers are reflected in the stock, which trades at a discount to the sector (~15.5x 2011E P/E vs. the sector at 15.9x median, 16.6x mean). Our $81 price target represents 16x our 2012 EPS estimate of $5.05."
For more ratings news on Dover Corp. click here and for the rating history of Dover Corp. click here.
Shares of Dover Corp. closed at $68.98 yesterday.
Nomura analyst, Shannon O’Callaghan, We’ve started getting questions to clarify recent patent infringement news as it relates to Dover’s Knowles MEMS microphone business and Analog Devices (NYSE: ADI). The case applies only to Knowles MEMS microphone imports into the US (we estimate 5% of Knowles sales, <1% of Dover) and relates not to core MEMS microphone IP but rather to a manufacturing process that Knowles no longer uses. In short, we see minimal impact to Knowles. We continue to believe Knowles has a strong technological and scale advantage on the competition that it can leverage through its internal sales as well as licensing technology to competitors to be available as second sources. We do not think Dover’s premium growth drivers are reflected in the stock, which trades at a discount to the sector (~15.5x 2011E P/E vs. the sector at 15.9x median, 16.6x mean). Our $81 price target represents 16x our 2012 EPS estimate of $5.05."
For more ratings news on Dover Corp. click here and for the rating history of Dover Corp. click here.
Shares of Dover Corp. closed at $68.98 yesterday.
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