Colfax slumps after analyst lowers rating
NEW YORK (AP) — Shares of pump and valve maker Colfax Corp. declined Monday after a Deutsche Bank analyst downgraded the stock, which is trading around all-time highs.
THE SPARK: Analyst John Inch lowered his rating to "Hold" from "Buy" because Colfax shares are trading around his price target of $54. He said Colfax shares have done well recently despite concerns about markets that are important to the company's growth, and he said the stock could rise to about $60 in the next year. However he said that doesn't merit a "Buy" rating.
THE BIG PICTURE: Inch said Colfax faces more exposure to emerging markets than its competitors, and the company's current share price might not reflect the risks the company faces from currency issues and expected slower growth in those markets.
The Fulton, Md., company said its sales grew 2 percent to $3.9 billion in 2012.
SHARE ACTION: Shares of Colfax lost $1.87, or 3.5 percent, to $50.98 on Monday. The shares have risen 26 percent in 2013 and reached an all-time high of $53.65 on June 19.