Oppenheimer analysts shared their views on Dover Corporation (NYSE:DOV), noting that it is well-positioned for continued EPS growth and stock price recovery.
Following a challenging 2022 year for the company’s stock, the analysts believe Dover entered the new year with multiple levers for earnings growth, continued strategic progression, and meaningful share price recovery.
According to the analysts, demand remains positive across the majority of Dover's diversified portfolio and elevated backlog affords a degree of insulation from market uncertainties (including potential re-pricing in more commodity-exposed businesses). Areas of recent portfolio weakness may also transition to catalysts, with biopharma having lapped peak COVID vaccine-related shipments (now awaiting a robust pipeline of biologic therapies) and above-ground fueling in restructuring mode to offset weak demand.
Combined with carryover accretion from 2022 deals (including Witte Pumps), over $500 million in share repurchases, and ample strategic flexibility, the analysts anticipate relative operating and share price outperformance. The analysts maintained their Outperform rating and $164 price target on the company’s stock.