Jefferies Reiterates Buy and PT of $157 on Flowserve

Jefferies reiterated its Buy rating on Flowserve FLS. At the same time, Jefferies left its price target on the company's stock unchanged at $157 after a meeting with the company's management. In a research report published today, Jefferies states, "We believe the takeaways from the meetings were incrementally positive versus the 1Q11 conference call. In our view, the global process capex cycle is in the early stages and FLS is just beginning to benefit. Recent pullbacks in commodities prices and world events have combined with 1Q11 estimate reductions (pushback on earnings acceleration views) to weaken the stock. But we continue to believe an earnings acceleration is still a matter of when, not if, given the track record here. We consider FLS a compelling value at current levels." On Friday, Flowserve closed the week at $106.37.