UPDATE: Citigroup Reiterates Neutral Rating, Lowers PT on Dover Corporation
In a report published Friday, Citigroup reiterated its Neutral rating on Dover Corporation (NYSE: DOV), but slightly lowered its price target from $62.00 to $61.00.
Citigroup noted, “We are lowering our estimate from $5.20 to $5.10 to account for the risk of slowing in its Energy (26% of sales) businesses, and a slightly slower growth forecast for Communications Technologies (18% of sales). Our estimates incorporate 3.2% organic revenue growth next year and a 28% incremental operating margin. Our target price is $1 lower to $61 based on an unchanged target multiple applied to our lower EPS estimate. We continue to assume DOV shares should trade at a 15% discount to MI-EE peers, towards the low-end of its (20%) to 10% historical relative range based on its potential cyclicality in a downturn. The target implies 2.8% upside.”
Dover Corporation closed on Thursday at $60.70.
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