Market Overview

3 Reasons To Like Gardner Denver Shares

3 Reasons To Like Gardner Denver Shares

Looking for a reason to buy shares of recently IPO'ed Gardner Denver Holdings Inc (NYSE: GDI)? How about three reasons, courtesy of analysts at Stifel.

Stifel's Nathan Jones initiated coverage of Gardner Denver's stock with a Buy rating and $27 price target as the company is a leading provider of flow control and compression equipment and aftermarket parts to industrial, energy and medical industries.

Gardner manufacturers an impressive range of products that management is able to leverage given its global geographic footprint and vast expertise, the analyst believes. As such, the company is able to provide a differentiated product and services offerings to a broad and diverse customer base.

3 Reasons To Buy

Jones highlighted three factors to support his bullish stance.

First, Gardner Denver is still in the early days of an operational transformation with the objective of cutting costs, achieving operational efficiency and generate meaningful margin expansions.

Second, the company is setting itself up to better take advantage of what the analyst believes will be an period of increasing U.S. rig counts throughout 2017 and 2018. In addition, a "more modest" improvement in midstream and downstream oil and gas will help boost Gardner Denver's Energy segment.

Third, while the company's Medical segment to see "modest" share loss and low-single digit growth this trend will reverse in 2019 when the segment will return to a mid-single digit growth rate or greater.

Bottom line, Gardner Denver's stock is trading at just 13.2x 2017E adjusted EV/EBITDA and 16.8x 2018E adjusted EPS but the stock should trade at a much higher multiple as the company is "coming off of the worst cyclical trough in probably over three decades." The analyst's $27 price target implies a 20x 2018E adjusted EPS multiple.

Related Links:

Benzinga's Top Upgrades, Downgrades For June 6, 2017

The Market In 5 Minutes
Image Credit: By Endulat - Own work, CC BY-SA 3.0, via Wikimedia Commons

Latest Ratings for GDI

Apr 2020CIBCDowngradesOutperformerNeutral
Feb 2020Credit SuisseMaintainsNeutral
Jan 2020UBSMaintainsBuy

View More Analyst Ratings for GDI
View the Latest Analyst Ratings


Related Articles (GDI)

View Comments and Join the Discussion!

Posted-In: gardner denver Nathan JonesAnalyst Color Long Ideas Price Target Initiation Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

BENMorgan StanleyMaintains19.0
ETSYMorgan StanleyMaintains74.0
EBAYMorgan StanleyMaintains57.0
CGNXMorgan StanleyMaintains57.0
BGMorgan StanleyMaintains66.0
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