UPDATE: Ascendiant Capital Initiates Coverage on DXP Enterprises with Neutral Rating on Fair Valuation

In a report published Wednesday, Ascendiant Capital analyst Christopher Bamman initiated coverage on DXP Enterprises

with a Neutral rating. In the report, Bamman noted, “DXP Enterprises, Inc. is a leading industrial distribution company providing maintenance, repair and operating (“MRO”) products and services, supply chain services, and innovative pumping solutions. Exposure to the energy market, industry consolidation, and ongoing internal initiatives are expected to contribute to solid revenue and earnings growth over the next few years. Via a combination of organic and acquisition driven growth, DXPE has doubled revenues every five years. Management targets annual organic and acquisition growth of 10%, respectively, per year and expects to add roughly $100 million in sales in 2013. Since 2002, sales have grown at a compound annual growth rate of roughly 22%. Acquisitions since the start of 2011 have added more than $200 million to sales in 2012. With a net debt/EBITDA of 2.1x, DXPE has the capacity to take on additional leverage as it pursues potential acquisitions.” DXP Enterprises closed on Tuesday at $72.89.