Will This Upgrade Help Flowserve (FLS) Today? (Update)

Update (9:40 a.m.): Updated with Thursday market open information.

NEW YORK (TheStreet) -- UBS increased its target price on Flowserve  (FLS) to $80 and set a "neutral" rating. The firm noted that EPD and IPD post stronger margins.

The stock was flat at $80.63 shortly after the market opened on Thursday.

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Separately, TheStreet Ratings team rates FLOWSERVE CORP as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate FLOWSERVE CORP (FLS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 17.4%. Since the same quarter one year prior, revenues slightly increased by 5.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 30.43% and other important driving factors, this stock has surged by 43.40% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, FLS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • FLOWSERVE CORP has improved earnings per share by 30.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, FLOWSERVE CORP increased its bottom line by earning $2.86 versus $2.55 in the prior year. This year, the market expects an improvement in earnings ($3.39 versus $2.86).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Machinery industry average. The net income increased by 18.8% when compared to the same quarter one year prior, going from $106.30 million to $126.27 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Machinery industry and the overall market, FLOWSERVE CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • You can view the full analysis from the report here: FLS Ratings Report

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