UBS Maintains a 'Buy' on Flowserve Corp. (FLS); Better Booking Momentum in Q4
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Price: $79.12 -2.28%
Rating Summary:
14 Buy, 14 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 13 | New: 26
Rating Summary:
14 Buy, 14 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 13 | New: 26
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UBS maintains a 'Buy' on Flowserve Corp. (NYSE: FLS) price target raised from $130 to $133.
UBS analyst says, "Our take on 4Q: better bookings momentum overshadows weaker margins - The key positive for us was growing bookings momentum, especially in the core EPD business (OE bookings +25% y/y ex-FX)."
"Our view on the stock: attractive value, but few visible near-term catalysts - We see good value in FLS shares, which trade at 13.6x our NTM EPS (historic range 10-17x). On our sum of the parts, putting a 9x EBITDA on AM implies just 5.8x for OE. Meanwhile, bookings momentum is growing, pricing is stabilizing and defensive attributes remain attractive (pristine B/S, 40% of sales from less cyclical AM). Though we acknowledge few visible catalysts, some risk to 1Q12 estimates and YTD outperformance (vs. XLI, SPX), which may warrant a breather." (UBS lowers FY12 EPS estimate from $8.70 to $8.60, maintains FY13 at $10.35)
For an analyst ratings summary and ratings history on Flowserve Corp. click here. For more ratings news on Flowserve Corp. click here.
Shares of Flowserve Corp. closed at $120.49 yesterday.
UBS analyst says, "Our take on 4Q: better bookings momentum overshadows weaker margins - The key positive for us was growing bookings momentum, especially in the core EPD business (OE bookings +25% y/y ex-FX)."
"Our view on the stock: attractive value, but few visible near-term catalysts - We see good value in FLS shares, which trade at 13.6x our NTM EPS (historic range 10-17x). On our sum of the parts, putting a 9x EBITDA on AM implies just 5.8x for OE. Meanwhile, bookings momentum is growing, pricing is stabilizing and defensive attributes remain attractive (pristine B/S, 40% of sales from less cyclical AM). Though we acknowledge few visible catalysts, some risk to 1Q12 estimates and YTD outperformance (vs. XLI, SPX), which may warrant a breather." (UBS lowers FY12 EPS estimate from $8.70 to $8.60, maintains FY13 at $10.35)
For an analyst ratings summary and ratings history on Flowserve Corp. click here. For more ratings news on Flowserve Corp. click here.
Shares of Flowserve Corp. closed at $120.49 yesterday.
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