Wells Fargo Starts Dresser-Rand Group (DRC) at Outperform; A Turbo (Machine)-Charged, Mid-Cap Play On Energy Infrastructure
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Price: $85.18 --0%
Rating Summary:
3 Buy, 11 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 13 | New: 26
Rating Summary:
3 Buy, 11 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 13 | New: 26
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Wells Fargo initiates coverage on Dresser-Rand Group (NYSE: DRC) with an Outperform. PT $61.00.
Wells analyst says, "Our 2011E, 2012E and 2013E revenue/EPS are $2.50B/$2.04, $3.14B/$3.15 and $3.64B/$4.15. We believe DRC is the best, mid-cap play on the full breadth of the secular, global uptrend in spending on oil & gas production, transportation, and refining infrastructure. Its OEM division, New Units, has top four share across three markets (FPSOs, LNG, and refining) that should grow significantly over the next two years and a lean, flexible model that when a downcycle hits, should mitigate margin erosion. Also, we expect two CAES and ICS to make nice strides. On the Aftermarket side, DRC is employing a three-prong approach to expanding revenue potential that we believe has proven successful and should fuel average growth of 20% over 2012-13."
For an analyst ratings summary and ratings history on Dresser-Rand Group click here. For more ratings news on Dresser-Rand Group click here.
Shares of Dresser-Rand Group closed at $47.76 yesterday.
Wells analyst says, "Our 2011E, 2012E and 2013E revenue/EPS are $2.50B/$2.04, $3.14B/$3.15 and $3.64B/$4.15. We believe DRC is the best, mid-cap play on the full breadth of the secular, global uptrend in spending on oil & gas production, transportation, and refining infrastructure. Its OEM division, New Units, has top four share across three markets (FPSOs, LNG, and refining) that should grow significantly over the next two years and a lean, flexible model that when a downcycle hits, should mitigate margin erosion. Also, we expect two CAES and ICS to make nice strides. On the Aftermarket side, DRC is employing a three-prong approach to expanding revenue potential that we believe has proven successful and should fuel average growth of 20% over 2012-13."
For an analyst ratings summary and ratings history on Dresser-Rand Group click here. For more ratings news on Dresser-Rand Group click here.
Shares of Dresser-Rand Group closed at $47.76 yesterday.
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