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UPDATE: KeyBanc Upgrades Gardner Denver to Buy on Compelling Valuation

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The Sell-Side Bulls Are Out In Force For Gardner Denver With A Slew Of Positive Initiations
3 Reasons To Like Gardner Denver Shares

KeyBanc upgraded Gardner Denver (NYSE: GDI) from Hold to Buy and announced a $78.00 price target.

KeyBanc commented, "We are upgrading GDI based on … 1) a compelling valuation following a period of share underperformance (trading at 7.2x 2013 EV/EBITDA vs. its peer group at 9.8x EV/EBITDA); 2) a pristine balance sheet supportive of a sizable share repurchase (2013 free cash plus one turn of EBITDA supports a buyback of approximately 20% of GDI's outstanding shares = $0.85+ of earnings power); 3) our conviction that petroleum pump demand will bottom in 2013 and begin to recover in 2014-2015 (investor sentiment and rig count to improve ahead of demand fundamentals); and 4) our view that GDI's European restructuring is on track to accrue savings of $35 million-$40 million by 2016, supporting mid- to high-teen operating margins for the Industrial Products Group over time."

Gardner Denver closed at $66.58 on Wednesday.

Latest Ratings for GDI

DateFirmActionFromTo
Jul 2017Wolfe ResearchInitiates Coverage OnOutperform
Jun 2017Tigress FinancialInitiates Coverage OnBuy
Jun 2017William BlairInitiates Coverage OnOutperform

View More Analyst Ratings for GDI
View the Latest Analyst Ratings

Posted-In: KeyBancAnalyst Color Upgrades Analyst Ratings

 

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