Nomura Securities Reiterates a 'Buy' on Dover Corp. (DOV); Q1 review; See Upside to FY12/13
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Price: $203.34 -1.52%
Rating Summary:
19 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 13 | New: 26
Rating Summary:
19 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 13 | New: 26
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Nomura Securities reiterates a 'Buy' on Dover Corp. (NYSE: DOV) price target of $78.00.
Analyst, Shannon O'Callaghan, said, "Dover has the lowest P/E in our EE/MI sector despite temporarily depressed earnings at Sound Solutions (SS) that are poised to improve sharply in 2H. Energy, Refrigeration, and Knowles remain strong with upside potential. The recently acquired Sound Solutions business is investing in automation to serve new customers where they already have design wins but will not see revenues until 2H, so there is a significant, but visibly temporary, cost/revenue mismatch. As a result, SS lost money in 1Q vs. normal margins that we estimate to be mid-teens or better. In 2H12, as revenues flow on the new automation lines, we think SS could earn $0.08+/Q vs. what we estimate to be a $0.03 loss in 1Q, a sharp positive swing. We see potential upside to 2012 and 2013 consensus EPS estimates."
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 $61.04 yesterday.
Analyst, Shannon O'Callaghan, said, "Dover has the lowest P/E in our EE/MI sector despite temporarily depressed earnings at Sound Solutions (SS) that are poised to improve sharply in 2H. Energy, Refrigeration, and Knowles remain strong with upside potential. The recently acquired Sound Solutions business is investing in automation to serve new customers where they already have design wins but will not see revenues until 2H, so there is a significant, but visibly temporary, cost/revenue mismatch. As a result, SS lost money in 1Q vs. normal margins that we estimate to be mid-teens or better. In 2H12, as revenues flow on the new automation lines, we think SS could earn $0.08+/Q vs. what we estimate to be a $0.03 loss in 1Q, a sharp positive swing. We see potential upside to 2012 and 2013 consensus EPS estimates."
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 $61.04 yesterday.
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