Donaldson Company (DCI) Gets a Hold Rating from Oppenheimer

By Ryan Adsit

Oppenheimer analyst Bryan Blair maintained a Hold rating on Donaldson Company (DCIResearch Report) today. The company’s shares opened today at $52.65.

Blair commented:

“We attended last week’s Investor Day, where CEO Tod Carpenter and his team outlined DCI’s technology-led, razor/razorblade business model, confidently addressed industry tailwinds and headwinds, and provided aggressive but achievable FY21 financial goals (+MSD growth, margin expansion targets discussed below). Although we remain cautious on near-term growth expectations (Engine facing challenging stacked comps, moderating demand over the coming quarters), we came away incrementally confident in DCI’s ability to sustain intermediate-term outgrowth and impressive mid-teens-plus ROIC. Balancing valuation (~23x FY19E EPS) and our cautious stance on near-term Engine demand with increased confidence in sustainable through-the-cycle outperformance (F2H19 potentially marking an operational inflection point), we look for a more compelling buying opportunity.”

According to, Blair is a 4-star analyst with an average return of 9.8% and a 78.9% success rate. Blair covers the Industrial Goods sector, focusing on stocks such as Carlisle Companies Incorporated, Lincoln Electric Holdings, and Watts Water Technologies.

Donaldson Company has an analyst consensus of Moderate Buy, with a price target consensus of $54.50.

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The company has a one-year high of $59.43 and a one-year low of $40.27. Currently, Donaldson Company has an average volume of 453.9K.

Based on the recent corporate insider activity of 127 insiders, corporate insider sentiment is negative on the stock. Last month, Willard Oberton, a Director at DCI sold 14,400 shares for a total of $707,040.

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Donaldson Co., Inc. engages in the manufacture of filtration systems and replacement parts. It operates through the Engine Products and Industrial Products segments.