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Investing.com - TD Cowen raised its price target on Flowserve Corp. (NYSE:FLS) to $80.00 from $75.00 on Tuesday, while maintaining a Buy rating on the stock. The new target sits below the analyst high target of $84 but well above the current price of $70.69, with InvestingPro data showing the stock trading near its 52-week high of $72.08.
The firm’s decision follows Flowserve’s strong third-quarter performance, with orders exceeding $1.2 billion, suggesting potential order growth into next year. TD Cowen noted improved execution across the company, particularly in the Flow Control Division (FCD). This performance aligns with Flowserve’s impressive PEG ratio of 0.29, indicating the stock is trading at a low P/E relative to its near-term earnings growth potential.
Nuclear power emerged as a significant driver for Flowserve, representing over 12% of bookings in the quarter and likely over 10% of fiscal year sales. The company’s established position in traditional power, life extensions, and small modular reactors (SMRs) provides competitive advantages in this growing market. With analysts forecasting EPS of $3.57 for fiscal year 2025, the nuclear segment appears to be contributing significantly to Flowserve’s profitability outlook.
TD Cowen highlighted Flowserve’s existing manufacturing capacity as a strategic advantage, noting the company can meet expected nuclear industry demand without requiring additional capital expenditure. This contrasts with other companies in the AI landscape that are deploying significant cash flow to expand capacity. InvestingPro data shows Flowserve operates with a healthy current ratio of 2.1, indicating liquid assets comfortably exceed short-term obligations, which supports this capital-efficient growth strategy.
The price target increase comes as Flowserve reclaims and exceeds its early 2025 stock price highs, with TD Cowen suggesting the company’s outlook has improved since earlier in the year. The stock has delivered remarkable returns, up 36.44% in the past week and 52.54% over six months. According to InvestingPro, Flowserve appears slightly overvalued compared to its Fair Value, with 14 additional ProTips available to subscribers seeking deeper insights into this outperforming industrial stock.
In other recent news, Flowserve Corporation reported its third-quarter 2025 earnings, exceeding analysts’ expectations with an adjusted earnings per share (EPS) of $0.90, compared to the forecasted $0.80. The company’s revenue aligned with projections, reaching $1.21 billion. Additionally, Flowserve announced bookings surpassing $1.2 billion and shared advancements in its 80-20/simplification initiatives. Following these results, Stifel increased its price target for Flowserve to $84.00, up from $66.00, while maintaining a Buy rating on the stock. This adjustment reflects the company’s strong financial performance and strategic progress. These developments highlight Flowserve’s ability to meet and exceed market expectations, contributing to a positive outlook from analysts.
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