Flowserve Shares Rise On New "Buy" Rating

NEW YORK (AP) — Shares of Flowserve Corp. rose Tuesday after an analyst initiated coverage of the pump and valve maker with a "Buy" recommendation.

Stifel Nicolaus analyst Jeffrey Beach said the Irving, Texas-based company is "well positioned to participate in a recovery in global infrastructure spending in the oil and gas and power markets in emerging economies."

Beach, who also said Flowserve's balance sheet is strong enough to enable it to buy other companies, expects 20 percent annual growth in its earnings per share as "an economic recovery unfolds."

The analyst estimates adjusted earnings per share this year of $8.26 and $7.36 next year.

Analysts polled by Thomson Reuters expect, on average adjusted earnings per share this year of $7.58 and $7.05 next year.

Beach has a $117 target price on the shares, which implies upside of 40.7 percent from their closing price Monday of $83.15.

In midday trading, the stock gained $3.54, or 4.3 percent, to $86.69.