On Wednesday, Mizuho Securities adjusted its outlook on Flowserve Corp . (NYSE: NYSE:FLS), a provider of fluid motion and control products and services. The firm increased the stock price target on the company's shares to $53.00 from the previous $50.00 while reiterating a Buy rating.
The adjustment comes in light of Flowserve's strong performance indicators, including a notable increase in cash flow, margin, and order levels. The analyst from Mizuho highlighted Flowserve's improved execution and the emergence of multi-year opportunities, particularly in the Power sector.
The company's 3D bookings saw a significant jump of 30%, and it reported record cash flow for the first quarter. Moreover, bookings surpassed the $1 billion mark again, signaling robust business momentum.
Flowserve appears to be strategically positioned to engage in large-scale projects and is expected to benefit from a multi-year capital expenditure cycle. In response to these positive developments, Mizuho has raised its earnings per share estimates for Flowserve. The firm now anticipates 2024 earnings per share to be $2.60, up from the previous estimate of $2.50, and for 2025, earnings per share are projected to reach $3.00, increased from $2.90.
The analyst's commentary underscores Flowserve's strong financial execution and the potential for future growth, driven by incoming projects and its ability to capitalize on large-scale opportunities. The revised stock price target of $53 reflects Mizuho's confidence in Flowserve's continued upward trajectory.
InvestingPro Insights
Flowserve Corp. (NYSE: FLS) has demonstrated resilience and growth potential according to recent InvestingPro data. With a market capitalization of $6.21 billion and a revenue growth of 17.31% over the last twelve months as of Q1 2024, the company shows a robust financial stature. The stock's price volatility is low, indicating steadiness in its trading pattern, which could appeal to investors seeking stability.
InvestingPro Tips reveal that Flowserve has maintained dividend payments for an impressive 18 consecutive years, with a dividend yield of 1.78% as of the latest data, and a 5.0% dividend growth in the same period. This consistent return to shareholders underscores the company's commitment to providing value over time.
Moreover, the company has been profitable over the last twelve months and analysts predict profitability will continue this year. For investors interested in Flowserve's future prospects, the stock has seen a large price uptick of 30.57% over the last six months, with a 41.85% return over the past year, signaling strong market confidence.
For those looking to delve deeper into Flowserve's performance metrics and gain access to more strategic insights, there are 9 additional InvestingPro Tips available at: https://www.investing.com/pro/FLS. Don't forget to use the special coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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