UPDATE: Citigroup Initiates Coverage on IDEX Corporation with Buy Rating, $48 PT

In a report published Monday, Citigroup initiated coverage on IDEX Corporation

with a Buy rating and a $48.00 price target. Citigroup noted, “IDEX is among the highest-quality Multi-Industry small-caps with near sector-best profitability, faster-than-average growth, and below-average cyclicality, and warrants a premium vs its small-cap Multi-Industry peers, in our view. We like its position in late-cycle and less-cyclical markets such as energy, petrochemical, water, and analytical instruments. IDEX's standout financial metrics include operating margins averaging 16% over the past five years (310 bps above the MI-EE segment average) and faster-than-average revenue growth at a 10% ten-year CAGR with below-average cyclicality. It boasts a ten-year track record of FCF>Net income.” IDEX Corporation closed on Friday at $41.51.