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On Monday, Stifel analysts maintained a Buy rating for Flowserve Corp (NYSE:FLS) but lowered the price target from $77 to $50. The revision reflects concerns over a potential modest industrial recession in the United States, anticipated to occur in the second half of 2025 through the first half of 2026. According to InvestingPro data, the stock has already declined over 26% year-to-date, trading at $42.28.
Stifel’s analysis suggests that the expected downturn is likely to result from current U.S. trade policies. These policies could lead to reduced capital and operating expenditures by customers due to the prevailing uncertainty. Furthermore, supply chain disruptions may force Flowserve and its customers to decelerate production.
Despite the downward adjustment in the price target, Stifel’s stance on Flowserve remains positive. The firm’s analysts believe that while the company may face short-term headwinds, its long-term prospects justify a Buy rating. InvestingPro analysis reveals strong fundamentals, with the company maintaining dividend payments for 19 consecutive years and operating with a moderate debt level. The company’s current P/E ratio of 19.7 and revenue growth of 5.49% suggest resilient performance.
The new price target of $50, down from $77, takes into account the potential impact of the anticipated industrial recession. Stifel’s commentary indicates a cautious approach, factoring in the broader economic influences that could affect Flowserve’s performance.
Flowserve, a provider of industrial and environmental machinery such as pumps, valves, and seals, operates in a sector sensitive to economic cycles. The company’s stock performance is thus closely tied to industrial investment trends and global trade dynamics. For deeper insights into Flowserve’s valuation and 12+ additional exclusive ProTips, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Flowserve Corporation has garnered attention with several significant developments. Baird analyst Michael Halloran upgraded Flowserve’s stock rating to Outperform, setting a price target of $71, citing the company’s attractive earnings trajectory and potential margin expansion. UBS analyst Damian Karas raised the price target for Flowserve to $66, maintaining a Buy rating and highlighting the company’s double-digit earnings growth potential and a strong year-end backlog of $2.8 billion. Stifel analysts also increased their price target to $77, noting Flowserve’s solid organic growth prospects and significant margin expansion despite a fourth-quarter revenue shortfall attributed to foreign exchange impacts.
Additionally, TD Cowen reiterated a Buy rating with a $75 target, emphasizing Flowserve’s healthy segment margins and the potential to attract new investors interested in the energy transition theme. In product news, Flowserve announced the INNOMAG TB-MAG Dual Drive Pump, a leak-proof magnetic drive pump designed to enhance safety and environmental protection in industrial settings. This innovative pump features a dual hermetically sealed structure and a non-metallic liner for corrosion resistance, offering an alternative to traditional Canned Motor Pumps.
These recent developments underscore Flowserve’s strategic focus on diversification, decarbonization, and digitization, aligning with its broader energy transition narrative. As the company continues to refine its operations and marketing approach, analysts remain optimistic about its potential for valuation upside and sustained improved execution.
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