UPDATE - UBS Upgraded Flowserve Corp. (FLS) to Buy; Improved Risk/Reward
Tweet
Share
E-mailGet Alerts FLS Hot Sheet
Price: $79.39 +1.65%
Rating Summary:
14 Buy, 14 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
14 Buy, 14 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
UPDATE - UBS upgraded Flowserve Corp. (NYSE: FLS) from Neutral to Buy, price target lowered from $121 to $105.
UBS analyst said, "Fundamentally we’ve been concerned about flattish bookings and price pressure in the core EPD OE (pumps) business (20% sales), and our post 2Q outlook for EPD/OE was incrementally worse. But with aftermarket (AM) and FCD/valves tracking better post 2Q (65% sales), plus a significant pullback in the shares and a host of defensive characteristics (net cash position, 19% ROIC in 2010, 40% sales from less cyclical, high-margin AM business) we think risk/reward is favorable here."
"Our base case reflects a 13x P/E on our 2012 base case EPS estimate of $8.55. Our recession case reflects an 11x P/E on our 2012E downside case EPS of $7.78. On our sum-of-the parts (not used to define target), which assumes an 8x EBITDA multiple on AM, the current share price creates the OE business at 2.4x (on 2012E)."
To see more ratings changes on FLS, Click Here
UBS analyst said, "Fundamentally we’ve been concerned about flattish bookings and price pressure in the core EPD OE (pumps) business (20% sales), and our post 2Q outlook for EPD/OE was incrementally worse. But with aftermarket (AM) and FCD/valves tracking better post 2Q (65% sales), plus a significant pullback in the shares and a host of defensive characteristics (net cash position, 19% ROIC in 2010, 40% sales from less cyclical, high-margin AM business) we think risk/reward is favorable here."
"Our base case reflects a 13x P/E on our 2012 base case EPS estimate of $8.55. Our recession case reflects an 11x P/E on our 2012E downside case EPS of $7.78. On our sum-of-the parts (not used to define target), which assumes an 8x EBITDA multiple on AM, the current share price creates the OE business at 2.4x (on 2012E)."
To see more ratings changes on FLS, Click Here
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Wells Fargo Upgrades Portland General Electric Company (POR) to Overweight
- Jefferies Upgrades Fortescue Metals Group Ltd. (FMG:AU) (FSUGY) to Hold
- Freedom Broker Upgrades Walmart (WMT) to Buy
Create E-mail Alert Related Categories
UpgradesRelated Entities
UBSSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
