Barclays Maintains an 'Equalweight' on Pall Corp (PLL); Sharpening Focus on Operational Leverage

Barclays maintains an 'Equalweight' on Pall Corp (NYSE: PLL) price target raised from $51 to $59.

Barclays analyst says, "We are encouraged by the sense of urgency around driving operating leverage in the business, with a goal of achieving incrementals in the high 30%s to low 40%s over time. Management believes the current cost structure is capable of delivering 25% incrementals (vs. just 15% in Q1) and op margin of 18% with operational improvements. These include consistent processes for contract negotiation, pricing, and forecasting sales mix, and driving manufacturing efficiency and cha nnelleverage. The global ERP system roll-out continues, and is expected to be fully deployed by late FY12. Management compensation has been realigned with progress on operating metrics (earnings growth, cash flow characteristics) and driving shareholder returns."

Barclays raises FY12 EPS estimate from $3.10 to $3.25 and FY13 from $3.68 to $3.74

For an analyst ratings summary and ratings history on Pall Corp click here. For more ratings news on Pall Corp click here.

Shares of Pall Corp closed at $56.66 yesterday.

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