Stifel Nicolaus Raises PT On DRC To $64

Stifel Nicolaus has raised its price target on Dresser-Rand Group DRC from $59 to $65 to correspond with increases in estimates. In the report, Stifel Nicolaus writes, “We've increased our 2011/2012 operating EPS estimates to $2.26/$3.54 from $2.25/$3.25 to reflect slight downward adjustments in our expectations for Aftermarket revenue in 2011, fully offset by contribution from the Grupo Guascor transaction, which closed on May 4. We estimate (conservatively, we think) that the acquisition will add an incremental $0.05/share and $0.34/share to Dresser's consolidated operating results in 2011 and 2012, respectively. We reiterate our Buy rating on the company's shares - our 12-month target price increases to $64/share from $58/share, and represents about 18x our 2012 operating EPS forecast.” As mentioned above, Stifel Nicolaus reiterates a Buy rating on the stock. DRC closed yesterday at $46.86.