Flowserve (FLS – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Andrew Obin from Bank of America Securities reiterated a Buy rating on the stock and has a $72.00 price target.
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Andrew Obin has given his Buy rating due to a combination of factors that suggest strong future performance for Flowserve. Despite the company’s adjusted EPS missing estimates for the second consecutive quarter, Flowserve demonstrated impressive bookings growth, which exceeded expectations and outpaced its peers. The company’s strategic acquisitions, such as MOGAS, are expected to contribute positively to margins, with an anticipated uplift of approximately 40 basis points in 2025.
Furthermore, Flowserve’s management introduced guidance for 2025 indicating a 3-5% organic growth and over 100 basis points of margin expansion. This guidance suggests a robust 22% year-over-year earnings growth, which aligns with consensus estimates. While there were some higher corporate costs, these appear to be temporary rather than structural issues. Given these factors, Andrew Obin maintains a positive outlook on Flowserve’s stock, reaffirming the Buy rating with a price objective of $72.