Positive Momentum Builds At DOV

Analyst Robert F McCarthy Jr of Robert W Baird maintains his "neutral" rating on Dover Corporation (NYSE: DOV), while raising his estimates for the company. The target price for DOV has been raised to $49.

Dover reported its Q4 2009 revenues and EPS ahead of the estimates and the consensus, driven by better-than-expected organic revenue growth. “Despite featuring an improved organic growth outlook (Energy, Electronics platforms), 2010 guidance does not anticipate incoming order rates continu(ing) to improve and appears potentially conservative,” the analyst says.

DOV’s “robust cash flow and strong balance sheet create substantial acquisition (and EPS accretion) capacity, but the pace of deals remains highly uncertain in the current environment,” the analyst adds. Robert W Baird has raised its EPS estimate for FY2010 from $2.30 to $2.50.

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