Analyst Saree Boroditsky of Jefferies maintained a Buy rating on Flowserve (FLS – Research Report), retaining the price target of $65.00.
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Saree Boroditsky has given his Buy rating due to a combination of factors surrounding the merger between Flowserve (FLS) and Chart Industries (GTLS). The merger is expected to enhance the combined company’s product offerings and achieve significant cost savings, particularly in operational and interest expenses. This strategic move is anticipated to strengthen the balance sheet and capitalize on the robust demand in the energy and power sectors.
Additionally, the merger positions the company to potentially reach earnings of approximately $5 per share by 2027, which is a substantial increase compared to its current valuation. If the company trades at its historical multiple of 17 times the 2027 estimated earnings per share, the stock price could approach $70, offering a compelling upside from its current levels. The transformation of Chart Industries into a diversified industrial entity, along with its strategic fit with Flowserve, further supports the positive outlook and Buy rating.
Boroditsky covers the Industrials sector, focusing on stocks such as Flowserve, Rockwell Automation, and Emerson Electric Company. According to TipRanks, Boroditsky has an average return of 5.4% and a 58.00% success rate on recommended stocks.