UPDATE: J.P. Morgan Upgrades Dover Corporation to Neutral, Raises PT
In a report published Monday, J.P. Morgan & Co. upgraded its rating on Dover Corporation (NYSE: DOV) from Underweight to Neutral, and raised its price target from $56.00 to $64.00.
J.P. Morgan noted, “We are upgrading DOV to Neutral (from Underweight) as most of the assumptions around our original thesis have played out, with Semi Equipment issues unfolding late in 2012, while the Knowles/Sound Solutions has so far failed to revolutionize the CMT growth profile. Shares have subsequently lagged, up 5% compared to last year vs the group +28%, a function of the P/E discount, which stretched as far as 17% in July (almost equal to discount in ‘08 last cycle), and now stands at 13%. We are maintaining estimates that remain below the Street for this year and next, and we worry about a 3Q miss, which keeps us from going to Overweight.”
Dover Corporation closed on Friday at $58.79.
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