NEW YORK (TheStreet) -- Shares of Dresser-Rand Group Inc. (DRC) are higher by 1.30% to $73.76 in pre-market trading on Thursday, as the stock continues Wednesday's gain following confirmation by Swiss company Sulzer AG, that the two companies are in talks regarding a potential merger deal.
Sulzer, involved in the machinery and equipment production sector, confirmed on its website yesterday that it and Dresser-Rand, a supplier of custom engineered equipment for a variety of industries, are in "non-exclusive discussions regarding potential transaction," in response to a Swiss newspaper's suggestion a deal could be completed as early as October.
Sulzer's also said "there can be no assurance" that these talks will result in a transaction, and said it will make no further comment until and if a deal is made.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Separately, TheStreet Ratings team rates DRESSER-RAND GROUP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate DRESSER-RAND GROUP INC (DRC) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."