Nomura Securities maintains a 'Buy' on Dover Corp. (DOV); Acquisition Another Positive Step

Nomura Securities maintains a 'Buy' on Dover Corp. (NYSE: DOV) price target of $72.00.

Nomura analyst, Shannon O’Callaghan, said, "The recently announced sale of Heil Trailer (12/30/11) is one more positive step in Dover’s shift out of lower-gross-margin non-core businesses into higher-growth, higher-margin spaces. We think Heil Trailer’s gross margins were closer to 20%, compared with Dover’s at around 38%. The $220M proceeds further add to Dover’s strong balance sheet, and we see $2B of acquisition firepower to be deployed within Dover’s five growth spaces. We are reducing our 4Q11 EPS estimate by $0.04 to reflect the absence of earnings from Heil Trailer. We are maintaining our 2012 EPS estimate at $4.95, as we believe that those divested earnings will be replaced by offsetting acquisitions in more attractive areas."

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 $59.09 yesterday.

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