Market Overview

Oppenheimer Downgrades Flowserve Ahead Of Q1 Earnings


In a report published Friday, Oppenheimer analysts downgrade Flowserve Corp (NYSE: FLS) from Outperform to Perform. The earning season has been lackluster across industrials due to the slowing down of global spending, especially in the energy segment, as well as the continued volatility in Fx.

The downgrade is based on expectations of "sustained organic growth challenges in the intermediate term given increased global energy infrastructure deferral risks and potential for shorter cycle run-rate OE and AM sales to prove less resilient in what appears to be an increasingly cautious investment backdrop," the analysts explained.

Oppenheimer expects Flowserve to revise its earnings downwards in the near term. "While strong booking/backlog trends in 4Q14 may prove supportive to 2015 results, recent market and competitor reads drive incremental caution on the outlook for not only large project OE order growth but also "runrate" original equipment and aftermarket demand," Oppenheimer stated.

The analysts also believe that there could be limited margin expansion opportunities for the company, given the weak organic growth outlook for 2015 and 2016. Multiple expansion could also be capped in the intermediate term, in the absence of EPS and order growth acceleration.

The EPS estimates for 2015 and 2016 have been revised down from $3.75 to $3.45 and from $4.10 to $3.65, respectively.

Latest Ratings for FLS

Jan 2021Credit SuisseDowngradesOutperformNeutral
Dec 2020Morgan StanleyMaintainsEqual-Weight
Dec 2020StifelUpgradesHoldBuy

View More Analyst Ratings for FLS
View the Latest Analyst Ratings


Related Articles (FLS)

View Comments and Join the Discussion!

Posted-In: OppenheimerAnalyst Color Downgrades Analyst Ratings

Latest Ratings

MRTXHC Wainwright & Co.Maintains257.0
NVDATruist SecuritiesMaintains672.0
BLKBMO CapitalMaintains715.0
BLKDeutsche BankMaintains838.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at