William Blair To Raise Donaldson (DCI) Estimates

One day after upgrading shares of Donaldson Company Inc DCI to Outperform, William Blair & Company analysts Brian Drab and Tim Mulrooney reiterated their rating and said that they would be raising their 2010 ad 2011 estimates after the conference call and discussions with the company's management. The analysts believed that the record operating margin reported by Donaldson Company Inc is not a one-off and that after aggressive cost-cutting moves made during the economic downturn, it is sustainable. The William Blair & Company analysts wrote, "the strong revenue performance topped original expectations, signaling that the company’s end markets are recovering more quickly than anticipated. Management raised 2010 revenue and earnings guidance, primarily reflecting a more optimistic outlook for the engine filtration market, which is being driven by a recovery in both on-road and off-road equipment builds and utilization. We will be raising our 2010 and 2011 estimates, but will not finalize our model until after the conference call and our discussions with management."