Oppenheimer Starts Flowserve Corp. (FLS) at Outperform, Sees Solid Growth & Margin Expansion
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Price: $79.39 +1.65%
Rating Summary:
14 Buy, 14 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
14 Buy, 14 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Oppenheimer initiates coverage on Flowserve Corp. (NYSE: FLS) with a Outperform. PT $175.00.
The firm said attractive organic growth prospects, margin expansion potential, cash flow improvements and M&A augmenting growth-all positioning it well for share price outperformance.
"We believe market-leading aftermarket capabilities lend cyclical resiliency, and significant operational upgrades along with a more efficient capital structure should drive ROE north of 25% in 2013 and beyond. We anticipate that FLS shares will command a premium multiple vs. the overall market and their peer set given these factors, and that the shares could approach a high-teens P/E, especially once long-cycle revenue growth accelerates. In the meantime, we more conservatively target 16.5x our '13E EPS, or $175."
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 $144.69 yesterday.
The firm said attractive organic growth prospects, margin expansion potential, cash flow improvements and M&A augmenting growth-all positioning it well for share price outperformance.
"We believe market-leading aftermarket capabilities lend cyclical resiliency, and significant operational upgrades along with a more efficient capital structure should drive ROE north of 25% in 2013 and beyond. We anticipate that FLS shares will command a premium multiple vs. the overall market and their peer set given these factors, and that the shares could approach a high-teens P/E, especially once long-cycle revenue growth accelerates. In the meantime, we more conservatively target 16.5x our '13E EPS, or $175."
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 $144.69 yesterday.
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