Jefferies Initiates FLS At Buy, $160 PT

Jefferies is initiating coverage of Flowserve Corporation FLS with a Buy rating and $160 PT. “FLS materially leveraged the upturn in capital spending in its end-markets last decade,” Jefferies writes. “Operating EPS nearly doubled each year from 2004 to 2008. Its earnings performance in the downturn also impressed. “Operating EPS increased ~10% in 2009 and should decline only 13% in 2010E. Strong execution, bookings stability from an expansive product line and footprint, and cost-cutting were the primary tenets of this performance, and are the underpinnings of our favorable view of FLS.” Flowserve Corporation closed Wednesday at $120.12.