Bank Of America Raises EPS And PO On Colfax

According to Bank of America, Colfax CFX EPS and PO is raised. Bank of America said that it is increasing its 2011-13 EPS forecasts by 5 cents for each year to $1.25 (2011), $1.60 (2012) and $1.90 (2013). “Our upward forecast revision is based on higher assumed organic growth, partially offset by lower gross margins – higher system sales in the 2 acquired businesses (Baric and Rosscor) pressure mix. We expect Colfax's variable contributions to improve in 2H11 as CBS (Colfax Business System) boosts the performance of the acquired companies and as Colfax works through lower margin marine orders. We are fine-tuning our P.O. higher from $26 to $27, representing a ~16.8x multiple (consistent with prior methodology) on our 2012 EPS forecast of $1.60.” Colfax closed yesterday at $21.01.