Dresser-Rand Group, Inc.’s (DRC) Coverage Initiated With A Neutral Rating

Analysts at SIG Susquehanna have initiated coverage for Dresser-Rand Group, Inc. (NYSE: DRC) with a Neutral rating.

According to analysts, the company’s reliable Aftermarket business, which has a 25%+ operating margins, will provide attractive earnings visibility during the next several years.

Analysts expect a recovery in orders in New Unit business in 2010 or 2011 after a quiet 2009. However, analysts believe that the timing of the recovery may get pushed out farther as it has for other capital equipment companies.

Dresser-Rand Group, Inc.’s shares have seen a correction of 8% during the past 4 weeks, which has created a reasonable valuation for the company, according to analysts.