Bank of America Merrill Lynch Neutral On Donaldson Company

Bank of America Merrill Lynch is out with a research report on Donaldson Company DCI and it has a Neutral rating and a $61 price target on shares. In a note to clients, Bank of America Merrill Lynch writes, "DCI FY4Q11 results were healthy with strong growth across segments. Based on current orders, the company provided upbeat FY12 outlook ahead of consensus and our EPS, indicating a continued healthy growth trend across both early and later-cycle industrial segments. DCI noted that visibility on OEM is limited to ~90 days but so far it has not seen cancellations in the Engine end markets, and still sees robust Industrial capex. Despite significant investment in growth initiatives, margin outlook for FY12 points to sustainable healthy operating leverage through the cycle. We raise our estimates and increase PO from $58 to $61." Shares of DCI gained $4.00 yesterday to close at $57.61.