Idex Posts Solid Earnings

Idex

reported solid 3Q results, but shares underperformed a weak tape, Oppenheimer believes related to some profit taking and expectations for an earnings beat already baked in. While shares currently trade at a premium to the industrial group on '11E, Oppenheimer finds this justified by long-term organic growth opportunities supported by a solid acquisition pipeline. At current levels Oppenheimer believes shares should find support and it sees limited downside, but note potential near-term multiple constraints given lack of deal flow of late and global macro uncertainty. Oppenheimer maintains its Perform rating. 2010 EPS guidance raised to $1.95-$1.97 from $1.85-$1.90 on 10% core growth and consolidated OM of 17%+. 4Q guidance range of $0.49-$0.51 on core growth "approaching 10%" compared to $0.48 consensus. Oppenheimer has a Perform rating on IEX IEX closed Tuesday at $35.53