UPDATE: Bank of America Initiates Coverage on Flowserve on Premium Product Offering

In a report published Wednesday, Bank of America analyst Andrew Obin initiated coverage on Flowserve Corporation (NYSE: FLS) with a Buy rating and $72.00 price target.

In the report, Bank of America noted, “We initiate on Flowserve (FLS) with a Buy rating and $72 PO, as we think the company has a premium product offering, with strong leverage to the global oil & gas and chemicals cycles. We believe Flowserve stands out as a pure-play flow control name, with 100% of revenue generated from pumps, valves, and seals (vs PNR 60%, ITT 45%, SPX 50% flow control revenue). We note the company's reputation as the best manufacturer, enjoying both superior pricing and cost controls relative to other key players in the market. Flowserve's oil & gas revenue is primarily generated in the mid and downstream markets, which are forecast with continued near-term capital spending.”

Flowserve Corporation closed on Tuesday at $62.41.