UBS Downgrades IDEX Corp (IEX) to 'Neutral' on NIH, Muni Overhangs
Tweet
Share
E-mailGet Alerts IEX Hot Sheet
Price: $234.16 -2.59%
Rating Summary:
15 Buy, 13 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 16 | New: 37
Rating Summary:
15 Buy, 13 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 16 | New: 37
Join SI Premium – FREE
UBS downgraded IDEX Corp (NYSE: IEX) from Buy to Neutral with a price target lowered from $43 to $38.
UBS analyst says, "Our take on 3Q: Water, HST/AI end market pressures raise concerns 3Q evidenced generally solid performance, but orders in FMT (45% sales) slowed to 6% from 21%/14% in 1Q/2Q, while orders in HST (33% sales) remained sluggish at 6%. We estimate orders in FMT/water (~10% IEX) fell 20-25% or -6% adj. for lumpy 2010 orders. Outlooks from TMO, WAT, SIAL corroborate a weak/weakening outlook for analytical instruments/AI in HST. While other water players (e.g. PNR, Arcadis) have cited weakening muni water demand."
"Our view on the stock: risk/ reward looks less compelling post 3Q - IEX has a strong portfolio of businesses with Dispensing and Fire generating strong FCF to fund growth in high-potential FMT and HST. But we see two overhangs increasingly making risk/
reward less compelling, perhaps for a while: (1) NIH funding pressures; (2) Muni water demand may worsen, pressuring an end market thought to have bottomed. Our revised rating does not reflect our view on IEX’s ability to manage these pressures but the heightened uncertainty they create."
For more ratings news on IDEX Corp click here and for the rating history of IDEX Corp click here.
Shares of IDEX Corp closed at $36.58 yesterday.
UBS analyst says, "Our take on 3Q: Water, HST/AI end market pressures raise concerns 3Q evidenced generally solid performance, but orders in FMT (45% sales) slowed to 6% from 21%/14% in 1Q/2Q, while orders in HST (33% sales) remained sluggish at 6%. We estimate orders in FMT/water (~10% IEX) fell 20-25% or -6% adj. for lumpy 2010 orders. Outlooks from TMO, WAT, SIAL corroborate a weak/weakening outlook for analytical instruments/AI in HST. While other water players (e.g. PNR, Arcadis) have cited weakening muni water demand."
"Our view on the stock: risk/ reward looks less compelling post 3Q - IEX has a strong portfolio of businesses with Dispensing and Fire generating strong FCF to fund growth in high-potential FMT and HST. But we see two overhangs increasingly making risk/
reward less compelling, perhaps for a while: (1) NIH funding pressures; (2) Muni water demand may worsen, pressuring an end market thought to have bottomed. Our revised rating does not reflect our view on IEX’s ability to manage these pressures but the heightened uncertainty they create."
For more ratings news on IDEX Corp click here and for the rating history of IDEX Corp click here.
Shares of IDEX Corp closed at $36.58 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- L. Paris Watts-Stanfield resigns from IDEX Corp. board
- Stifel Downgrades Weave Communications Inc (WEAV) to Hold
- JPMorgan Downgrades Mereo BipPharma Group (MREO) to Underweight
Create E-mail Alert Related Categories
DowngradesRelated 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!
