“While we understand investor concerns over the reported attempt by SPX to acquire Gardner Denver (GDI, not rated) late last year, the numbers here are pretty simple. And compelling. We forecast $5 of EPS in 2013 growing by 50% over the following 2 years to $7.51 in 2015, and you can buy this growth for ~16x 2013E or ~13x 2014E earnings. We view the $200 million share repurchase and $250 million pension pre pay (equivalent to a debt reduction, but with a better return) as shareholder friendly moves which should help investors comfort level.,” the firm’s analyst commented.
SPX Corp traded up 0.84% on Friday, hitting $80.04. SPX Corp has a 52-week low of $56.31 and a 52-week high of $80.88. The stock’s 50-day moving average is currently $73.39. The company has a market cap of $3.970 billion and a price-to-earnings ratio of 15.32.
A number of other analysts have also recently weighed in on SPW. Analysts at Deutsche Bank raised their price target on shares of SPX Corp from $76.00 to $81.00 in a research note to investors on Monday, January 7th. They now have a buy rating on the stock. Separately, analysts at Langenberg & Company downgraded shares of SPX Corp from a buy rating to a hold rating in a research note to investors on Wednesday, January 2nd. They now have a $75.00 price target on the stock. Finally, analysts at Zacks upgraded shares of SPX Corp from an underperform rating to a neutral rating in a research note to investors on Tuesday, January 1st. They now have a $71.20 price target on the stock.
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