Analyst Andrew Kaplowitz of Citi maintained a Buy rating on Flowserve (FLS – Research Report), boosting the price target to $58.00.
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Andrew Kaplowitz has given his Buy rating due to a combination of factors that highlight Flowserve’s potential for robust earnings growth. The strategic combination with GTLS is expected to enhance Flowserve’s portfolio and increase its aftermarket revenue exposure, which is crucial for resilient earnings over time. The company’s commitment to simplification efforts and potential cost synergies, estimated at approximately $300 million annually within three years, are expected to improve margins and profitability.
Furthermore, Flowserve is well-positioned for growth across its end markets, particularly in power and energy transition sectors. The integration with GTLS is anticipated to create a competitive full-solution portfolio with enhanced profitability and scale, which should lead to improved earnings resilience. Despite some investor concerns about integration distractions, Flowserve’s focus on higher revenue and margin products, along with its 3D growth strategy, is expected to provide solid booking opportunities in the coming years.
Kaplowitz covers the Industrials sector, focusing on stocks such as Emerson Electric Company, Flowserve, and Fluor. According to TipRanks, Kaplowitz has an average return of 27.7% and a 73.72% success rate on recommended stocks.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $65.00 price target.