Dover Corporation (NYSE:DOV), a major industrial products manufacturer, boasts an exceptional track record of raising dividends for 67 consecutive years. This impressive streak helped it earn a spot among the esteemed Dividend Aristocrats (stocks that have raised their dividends for at least 25 consecutive years). In addition to providing a reliable income source, Wall Street analysts anticipate that DOV will offer a remarkable 21% growth potential.
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Here’s What Analysts Are Saying About Dover
Mizuho Securities analyst Brett Linzey holds a positive view of Dover’s recent strategic moves, such as divesting the De-Sta-Co business and acquiring FW Murphy. The FW Murphy acquisition is expected to close in the fourth quarter of 2023, while the De-Sta-Co divestiture is projected to be completed in the first quarter of 2024.
The analyst anticipates the FW Murphy deal contributing more stable recurring revenue to the company’s top line. Linzey also sees the portfolio adjustments as a means for DOV to concentrate on its core platforms.
In a research note to investors on October 12, Linzey maintained a Buy rating on Dover stock with a price target of $165 (implying 21.5% upside potential).
Furthermore, a Top-rated Analyst Bryan Blair from Oppenheimer reiterated a Buy rating on the stock on October 11, with a price target of $177 (30.3% upside). Blair views DOV’s current valuation as appealing, driven by the stock’s underperformance so far this year, largely due to the uncertainties in the biopharma sector.
The analyst has identified multiple catalysts that could drive Dover’s growth in the second half of 2023 and into 2024. These factors include a substantial backlog, improving demand, cost-control efforts, and a potential resurgence in the biopharma sector. The analyst also expects the company to benefit from substantial carryover savings, which might contribute to sustained earnings momentum.
Is DOV a Good Stock to Buy?
Overall, Wall Street analysts are cautiously optimistic about DOV stock. It has received eight Buy and five Hold recommendations for a Moderate Buy consensus rating. Meanwhile, the average Dover stock price target of $165.15 implies 21.6% upside potential from current levels.
Ending Thoughts
Dover’s growth potential reflects in its commitment to digital transformation, which includes harnessing machine learning tools, artificial intelligence (AI), and digital commerce capabilities to drive operational efficiencies and competitiveness. Finally, consistent dividend payments and promising future prospects make DOV stock a dependable choice for income investors.
