Oppenheimer analyst Jim Giannakouros maintained a Hold rating on Donaldson Company (NYSE: DCI) today. The company’s shares closed on Friday at $46.22.
Giannakouros said:
“DCI reported F3Q18 adj. EPS of $0.53, slightly above our $0.52E on better than expected top line (both segments), partially offset by margin declines. Raw material inflation continues to be the biggest culprit in gross margin pressures but mix (OE materially outgrowing AM sales) and supply chain adjustments made to accommodate strong demand are also contributors. Management gave preliminary views on FY19, citing confidence in both growing revenues organically (despite considerably tough comps) and expanding margins y/y—with better line of sight through F1H19. DCI inched up its FY18 EPS guidance midpoint, increasing the lower end, and we model accordingly. Absent more evidence of incremental margin improvement or a more accommodative entry point, we remain patient on the sidelines.”
According to TipRanks.com, Giannakouros is a 4-star analyst with an average return of 6.2% and a 55.9% success rate. Giannakouros covers the Industrial Goods sector, focusing on stocks such as Lincoln Electric Holdings, Watts Water Technologies, and Carlisle Companies Inc.
Currently, the analyst consensus on Donaldson Company is Hold and the average price target is $48, representing a 3.9% upside.
In a report issued on June 1, Stifel Nicolaus also maintained a Hold rating on the stock with a $46 price target.
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Donaldson Company’s market cap is currently $6B and has a P/E ratio of 42.21. The company has a Price to Book ratio of 7.30.
Based on the recent corporate insider activity of 105 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of DCI in relation to earlier this year.
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Donaldson Co., Inc. engages in the manufacture of filtration systems and replacement parts. Its product mix includes air and liquid filtration systems and exhaust and emission control products. It operates through the Engine Products and Industrial Products segments.
