Dover price target raised to $90 from $80 at RW Baird Baird raised its price target on Dover following announcement of plans to spin off certain Communications Technologies assets into a new company. The firm views the unlocking of shareholder value and the re-focusing on core industrial markets as a positive driver. Shares are Outperform rated.
Dover seeks to expand core margin 30-50bps per year Says looking to expand "core" margin 30-50bps per year through productivity. Says seeks to generate free cash flow in excess of 11% of revenue. Sees "broad" organic growth opportunities, including growing core business and continuing to expand geographical presence. Areas for acquisition growth include: Building on position in verticals, pump technologies, opportunities to expand in Fluid Transfer; verticals served in Printing; growing presence in Food Equipment; continuing to build Automation platform. Says recent restructuring actions expected to deliver benefits of around $75M in 2015, other actions delivered another $30M. Expects to continue to raise dividend, will continue to build businesses via acquisitions, says share repurchases remain important component of capital allocation. Comments from slides that will be presented at the Electrical Products Group Conference.