UPDATE: Oppenheimer Holdings Initiates Coverage on Donaldson Company with Perform Rating

In a report published Friday, Oppenheimer Holdings initiated coverage on Donaldson Company

with a Perform rating. Oppenheimer noted, “DCI is a global leader in filtration systems and related replacement parts, with mid-teens operating margin and ROIC of 22%. Through its Engine Products (63% of sales), DCI sells to OEMs in the truck, construction, mining, and agriculture markets, while Industrial Products (37%) sells to a diversified set of industrial end-users, OEMs of gas-fired turbines, and other special applications. While we believe DCI's technology leadership and global scale position it well to capture more than its fair share of expanding global market opportunities, we believe initial FY13 guidance may prove vulnerable to the current heightened macro uncertainty and related expected declines in OE build rates.” Donaldson Company closed on Thursday at $33.88.