Nomura Securities Maintains a 'Buy' on Dover Corp. (DOV); Potential Buyback Getting Closer
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Price: $207.07 +0.20%
Rating Summary:
19 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
19 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Buy' on Dover Corp. (NYSE: DOV) price target of $74.00.
Analyst, Shannon O'Callaghan, said, "We expect share repurchase to be on the agenda at Dover’s upcoming board meeting (August 2 by our estimate) which we think could be a catalyst for the stock. On Dover’s 2Q earnings call, management noted that the company has no large acquisitions in its pipeline and has been actively discussing the topic of share buybacks. We estimate a $500M buyback in 2012 would be very manageable for Dover (22% net debt/net cap would only go to 27% and Dover will generate almost $900M of free cash flow this year, by our estimate) and would be $0.25+ accretive to 2013 EPS (not assumed in our current model). Combined with our expectations for Sound Solutions in 2013, the two together have the potential to deliver $0.45+ of incremental EPS in 2013. Should the company choose to accelerate share repurchases, it remains unclear whether we will get an announcement out of the board meeting or will have to wait for another forum, but we think we could get a catalyst soon."
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 $54.16 yesterday.
Analyst, Shannon O'Callaghan, said, "We expect share repurchase to be on the agenda at Dover’s upcoming board meeting (August 2 by our estimate) which we think could be a catalyst for the stock. On Dover’s 2Q earnings call, management noted that the company has no large acquisitions in its pipeline and has been actively discussing the topic of share buybacks. We estimate a $500M buyback in 2012 would be very manageable for Dover (22% net debt/net cap would only go to 27% and Dover will generate almost $900M of free cash flow this year, by our estimate) and would be $0.25+ accretive to 2013 EPS (not assumed in our current model). Combined with our expectations for Sound Solutions in 2013, the two together have the potential to deliver $0.45+ of incremental EPS in 2013. Should the company choose to accelerate share repurchases, it remains unclear whether we will get an announcement out of the board meeting or will have to wait for another forum, but we think we could get a catalyst soon."
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 $54.16 yesterday.
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