Bank of America Securities analyst Andrew Obin has maintained their bullish stance on FLS stock, giving a Buy rating on June 6.
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Andrew Obin has given his Buy rating due to a combination of factors surrounding Flowserve’s strategic merger with Chart Industries. The merger is expected to result in significant earnings per share accretion by the fiscal year 2029, with the combined entity benefiting from increased scale and enhanced market exposure, particularly in the liquefied natural gas, renewable energy, and nuclear sectors. Additionally, the merger is anticipated to improve revenue stability and aftermarket exposure, contributing to a stronger financial outlook for the combined company.
Moreover, the merger is projected to achieve substantial cost and revenue synergies, with $300 million in cost savings and a 2% revenue growth target. These synergies are expected to be realized quickly, driven by reductions in public company costs, improved procurement, and operational efficiencies. The combined company’s enhanced presence in key geographical and market segments, such as the Middle East and LNG, further supports the positive outlook. These strategic benefits underpin Obin’s confidence in Flowserve’s ability to execute successfully as a larger, more complex organization, justifying the Buy rating.
According to TipRanks, Obin is a 5-star analyst with an average return of 12.6% and a 61.43% success rate. Obin covers the Industrials sector, focusing on stocks such as Vertiv Holdings, Ametek, and Honeywell International.