Barclays Maintains an 'Equalweight' on Dover Corp. (DOV); Notes from Dover Day 2011
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Price: $203.14 -1.61%
Rating Summary:
19 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 13 | New: 26
Rating Summary:
19 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 13 | New: 26
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Barclays maintains an 'Equalweight' on Dover Corp. (NYSE: DOV) price target of $67.00.
Barclays analyst says, "Dover is a reasonably priced stock (12x 2012E, 9% FCF yield) with a mix of mostly good, likely underappreciated businesses. Investor perception of the stock has changed considerably over the past couple of years - DOV once had a reputation for being sleepy and unfocused, and this is no longer the case. "New" management has put up several impressive years, improved the portfolio through M&A, and divested underperforming business, and operating execution is above historic levels. We long believed the potential for higher LT growth rates, margins, and returns was embedded in the portfolio, and this management team has executed, effectively balancing growth and cost reduction. Overall portfolio is being integrated to a much greater extent than historically and cost synergies continue to emerge. We also like the new segment structure and think it simplifies the story a bit. Our 2012E EPS goes to $4.80 from 4.75."
Other points included: 1) We are generally positive on DOV but tough comps and unique at-risk markets keep us on the sidelines; and 2) Smart M&A also potential to be big catalyst. With $3B of FCF generation forecast
over the next 2-3 years and capacity to lever the B/S, ample deal buying powder exists.
For an analyst ratings summary and ratings history on Dover Corp. click here. For more ratings news on Dover Corp. click here.
Shares of Dover Corp. closed at $57.51 yesterday.
Barclays analyst says, "Dover is a reasonably priced stock (12x 2012E, 9% FCF yield) with a mix of mostly good, likely underappreciated businesses. Investor perception of the stock has changed considerably over the past couple of years - DOV once had a reputation for being sleepy and unfocused, and this is no longer the case. "New" management has put up several impressive years, improved the portfolio through M&A, and divested underperforming business, and operating execution is above historic levels. We long believed the potential for higher LT growth rates, margins, and returns was embedded in the portfolio, and this management team has executed, effectively balancing growth and cost reduction. Overall portfolio is being integrated to a much greater extent than historically and cost synergies continue to emerge. We also like the new segment structure and think it simplifies the story a bit. Our 2012E EPS goes to $4.80 from 4.75."
Other points included: 1) We are generally positive on DOV but tough comps and unique at-risk markets keep us on the sidelines; and 2) Smart M&A also potential to be big catalyst. With $3B of FCF generation forecast
over the next 2-3 years and capacity to lever the B/S, ample deal buying powder exists.
For an analyst ratings summary and ratings history on Dover Corp. click here. For more ratings news on Dover Corp. click here.
Shares of Dover Corp. closed at $57.51 yesterday.
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