UPDATE: Stifel Initiates Coverage on AMETEK with Buy Rating, $59.00 PT on Solid Potential Upside

In a report published Friday, Stifel analyst Robert McCarthy initiated coverage on

with a Buy rating and $59.00 price target. In the report, Stifel noted, “We are initiating coverage of AMETEK, Inc. (AME) with a Buy rating on the shares and a target price of $59 (20x 2016E EPS of $2.95), indicating 19% potential upside. Our target price is informed by what we estimate as $0.20-$0.30 of accretion from deals we would expect to see from the company due to its deployment of $1 billion-plus in capital with the goal of doubling sales and profits by 2018. AMETEK ultimately is an acquisition selection, execution, and integration story, and we are comfortable with the management in place (led by Frank Hermance) and the strong operating culture and process. With $3.6 billion in 2013 sales, we view AMETEK, Inc. as a well run, acquisitive mini-conglomerate with a very good track record of acquisition selection and integration.” AMETEK closed on Thursday at $49.72.