Ahead Of The Bell: Colfax Shares Upgraded

NEW YORK (AP) — A recent 18 percent decline in the share price of pump and valve maker Colfax Corp. plus its long-term prospects led an analyst Friday to upgrade the company's shares.

Janney Montgomery Scott analyst Ryan C. MacLean upgraded shares of the Richmond, Va., company to "Buy" from "Neutral."

On Thursday the stock closed at $7.52, down from its June 11 closing price of $9.13. The stock traded at a 52-week high of $28.35 last August.

MacLean said Colfax, which went public in May 2008, has "enduring franchises, substantial long-term growth opportunities, and the (demonstrated) ability to continuously improve operating results.

The analyst expects Colfax to struggle in the second half of this year and perhaps into next year, too.

"While we are expecting things to get worse before they get better, the recent decline in the company's stock price has allowed it to reach a point where the risk/reward trade-off is attractive."

MacLean also said the company's strong financial position leads him to expect acquisitions.