Oppenheimer Reaffirms Their Hold Rating on Donaldson Company (DCI)


Oppenheimer analyst Bryan Blair maintained a Hold rating on Donaldson Company (DCI) yesterday. The company’s shares closed yesterday at $51.55.

Blair wrote:

“While confident in solid FY19 sales performance (bolstered by technology-driven share gains across segments), we are incrementally cautious on DCI’s Engine-OE outlook after refreshing analysis of key demand drivers. Following two years of robust Off-Road growth, we believe macro/political uncertainties may pressure top- line trends more than anticipated over the coming quarters. While we caution investors not to overemphasize the US trucking cycle (domestic On-Road OE comprising only 3-4% of DCI revenue), the recent slide in orders will likely reset late-FY19/FY20 growth expectations and may impact stock sentiment. Combining our more cautious stance on Engine demand trajectory, continued price/cost concerns (possibility of sustained Engine IM pressure in F2Q), and valuation (~21x P/E), we look for a more attractive entry point on shares.”

According to TipRanks.com, Blair is a 3-star analyst with an average return of 3.5% and a 60.6% success rate. Blair covers the Industrial Goods sector, focusing on stocks such as Carlisle Companies Incorporated, Lincoln Electric Holdings, and Watts Water Technologies.

Donaldson Company has an analyst consensus of Hold, with a price target consensus of $53.

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Donaldson Company’s market cap is currently $6.59B and has a P/E ratio of 35.11. The company has a Price to Book ratio of 7.76.

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Donaldson Co., Inc. engages in the manufacture of filtration systems and replacement parts. It operates through the Engine Products and Industrial Products segments.

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