Nomura Securities Maintains a 'Buy' on Dover Corp. (DOV); Divestitures Positive for the Portfolio

Nomura Securities maintains a 'Buy' on Dover Corp. (NYSE: DOV) price target of $70.00.

Nomura analyst, Shannon O’Callaghan, says, "On 9/29 Dover announced the sale of 2 of the 3 construction assets earmarked for strategic action. The asset sales remove lower margin businesses (mid-20’s gross margin vs. DOV ~38% GM and just below 10% operating margin vs. DOV ~16%) that have weighed on Dover, particularly during the last downturn. Our estimate already assumed the sale of all three businesses, but not until 4Q11. We are lowering 3Q11 by $0.04, 4Q11 by $0.01, and 2011 by $0.11 to $4.44 from $4.55, which includes the complete removal of Crenlo and Paladin from 2011. Our 2012 EPS estimate of $4.85 is unchanged."

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 $46.60 yesterday.

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