|
|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
Auto Beat
Bangalore Tigers
Blogspotting
Brand New Day
Byte of the Apple
Economics Unbound
Eye on Asia
Fine On Media
Green Biz
Hot Property
Investing Insights
Management IQ
NEXT: Innovation
NussbaumOnDesign
Tech Beat
Working Parents
TECHNOLOGY
J.D. Power Ratings
Product Reviews
Tech Stats
Wildstrom: Tech Maven
AUTOS
Home Page
Auto Reviews
Classic Cars
Car Care & Safety
Hybrids
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip INVESTING Investing: Europe Annual Reports BW 50 S&P Picks & Pans Stock Screeners Free S&P Stock Report SCOREBOARDS Hot Growth 100 Mutual Funds Info Tech 100 S&P 500 B-SCHOOLS Undergrad Programs MBA Blogs MBA Profiles MBA Rankings Who's Hiring Grads |  |
APRIL 2, 2007
Bubbling Up At Dresser  With infrastructure spending in the oil-and-gas industry starting to rise, Dresser-Rand Group (DRC
), a leading maker of large compressors, turbines, and control systems, is catching the eye of investors. Its stock has spiraled from 18 in early October to 27.94 on Mar. 21. Dresser is benefiting from the large projects worldwide of major oil-and-gas companies, says Robert Starbuck of Schroder Investment Management, which owns shares. Its financials have been solid, but "the growth part of the story has yet to kick in," says David Anderson of UBS (UBS
), who has a "buy" rating. (UBS has done banking for Dresser.) Increased spending for floating platforms, refineries, pipelines, and liquefied natural gas plants, he adds, has boosted demand through the end of the decade. Compressors are "critical long-lead items" in refinery and upstream projects, and prices are starting to reflect this, says Ole Storer of Morgan Stanley (MS
), which has done banking for Dresser. He rates the stock "overweight," with a 12-month target of 35. Storer projects earnings of $1.67 a share for 2007, $2.20 for 2008, and $2.63 for 2009. CEO Vincent Volpe says many of Dresser's clients have announced higher capital spending budgets for 2007. Dresser has alliances with such big clients as Marathon Oil (MRO
), Shell Chemicals (RDS
), ExxonMobil (XOM
), and Chevron (CVX
).
Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.  By Gene G. Marcial
BW MALL
SPONSORED LINKS
Get BusinessWeek directly on your desktop with our RSS feeds.
Buy a link now! Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
 Copyright 2007, by The McGraw-Hill Companies Inc. All rights reserved.Terms of Use | Privacy Notice |
Printer-Friendly Version