Hudson Securities Upgrades Gardner Denver Corp. To Buy (GDI)

Hudson Securities is out with a research report this afternoon, where it upgrades shares of Gardner Denver Corp. GDI to Buy, from Neutral; it has a $102.00 price target on the stock, up from $81.00. The HS analysts cited the company's recent earnings results, which were better than expectations. Orders in Engineered Products increased 39% (+36% organic) from 1Q10 reflecting strong demand for natural gas and oil drilling pumps. Backlog increased 65% organically vs 1Q10 reflecting not only the strong drilling environment but also contribution from medical OEMs. As for valuation, the analysts remarked, “We are raising our 2011 EPS estimate to $4.70 from $4.20 and our 2012 EPS estimate to $5.50 from $4.79. We are raising our price target to $102 from $81 based on 18.5x our 2012 EPS of $5.50.”