Nomura Securities Maintains a 'Neutral' on SPX Corp. (SPW); Thoughts on Acquisition of CLYDEUNION Pumps

Nomura Securities maintains a 'Neutral' on SPX Corp. (NYSE: SPW) price target of $70.00.

Nomura analyst, Shannon O’Callaghan, said, "SPW announced it entered into an agreement with Clyde Blowers Capital to acquire CLYDEUNION pumps for ~$1.1B. This represents ~12x 2011E EBITDA and ~10.5x 2012E EBITDA. Management is guiding to $0.30-$0.40 of EPS accretion in 2012 ($0.60- $0.70 of cash EPS accretion) assuming organic sales growth of 10%+ and no synergies in 2012. The deal is expected to close in 4Q11. We continue to like SPX’s long-term earnings power but remain on the sidelines, given increased risk to 2H11/2012 and our view of a decreased sense of urgency to get into the stock."

For more ratings news on SPX Corp. click here and for the rating history of SPX Corp. click here.

Shares of SPX Corp. closed at $48.96 yesterday.

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