Deutsche Bank Sees Strong Upside In Shares Of Dover (DOV)

Deutsche Bank is reiterating its Buy rating and $59 price target on shares of Dover Corporation DOV after the investment bank met with company management. In a note to investors, Deutsche Bank writes, "DOV's commentary around QTD trends was extremely upbeat and broad-based, underlining our view that positive earnings momentum is likely to continue into 2H. Moreover, we see upside to mgmt's guidance for 2ppts+ margin expansion over the next cycle. Given upside to our $59 PT, we reiterate Buy." Deutsche Bank went on to say, "We believe that upside earnings momentum will continue into 2H10, implying that DOV can still provide an upside bias to street expectations. This, coupled with the potential for a bullish November investor day, leads us to believe that DOV’s discount is unwarranted, at 11.8x 2011E vs. the DB MI/EE Universe at 12.5x. Given upside to our unchanged $59 PT, we reiterate Buy. Risks: Sharp decline in natural gas prices, downside to SemiCap capex, pricing pressure, raw material inflation." Shares of Dover lost 22 cents yesterday, to close at $44.24.