UPDATE: Bank of America Downgrades Donaldson Company on Full Valuation

In a report published Tuesday, Bank of America analyst Andrew Obin downgraded the rating on

from Buy to Underperform, and raised the price target from $41.00 to $42.00. In the report, Bank of America noted, “As DCI approaches our PO of $41, we downgrade the stock from Buy to Underperform. Based on our above-consensus EPS, DCI stands out as one of the most expensive names in our coverage, despite having below-average EPS growth over the next two years. Although we view Donaldson as an excellent company, and we expect investors to continue paying a premium multiple for the more stable, high-quality industrial name in the uncertain macro environment, we see more risk than upside to the stock at the current trading level near-term.” Donaldson Company closed on Monday at $40.43.