Goldman Sachs Raising Estimates On Dover Corp.

Goldman Sachs is raising its estimates on shares of Dover Corp. DOV, and is raising its price target to $80 from $78. It has a Buy rating on shares. In a note to clients, Goldman Sachs writes, "Following the closing of the Sound Solutions acquisition, we raise our 2012/2013 EPS estimates to $5.35/$6.10 from $5.20/ $5.80 for anticipated accretion, and thus our 12-month price target rises to $80 (15X 2012E P/E) from $78. While 16% upside to our price target is modestly above average and while DOV's late-cycle exposure is lower than some, we see clear reasons suggesting that upside remains to both our new estimates and valuation, including (1) structurally improved management under CEO Bob Livingston, (2) increasing potential for sustained double-digit organic growth in Electronic Tech (vs. GS high singles) fueled by MEMS and new products, (3) DOV's late cycle exposure in oil & gas may prove more potent than non-res construction exposures of others in 2011-2012, (4) strong capacity for further accretive M&A, (5) potential for a 2Q “beat and raise,” and (6) DOV remains a relatively “under the radar” story with investors." Shares of DOV closed at $68.98 yesterday.