UPDATE: Morgan Stanley Downgrades Dover as Risk/Reward is Now Slanting Neutral/Negative
In a report published Monday, Morgan Stanley analyst Nigel Coe downgraded the rating on Dover Corp. (NYSE: DOV) from Overweight to Equal-Weight, but raised the price target from $93.00 to $94.00.
In the report, Morgan Stanley noted, “For the last year, we have argued that Dover's FY13 guidance (which embedded 17% Y/Y mid-point EPS growth) was achievable and that this would lead to above-average multiple expansion. This has effectively played out, leading DOV to a ~40% gain YTD, outperforming the EE/MI group by 9ppts. Moreover, management has also taken many equity-friendly actions including a $1bn share repurchase, the sale of its residual SemiCap exposures and is in the process of spinning out its Consumer Electronics business, Knowles.”
Dover closed on Friday at $90.74.
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