Benzinga | Oct 15, 2021 09:01AM EDT

UBS Analyst Bullish On Flowserve, Sees Sharp Upside

* UBS analyst Damian Karas upgraded Flowserve Corp (NYSE:FLS) to Buy from Neutral and raised the price target to $46 (implying an upside of 29.29%) from $42.

* Karas notes company's expected earnings growth of over 50% through FY23 looks "underappreciated" relative to the risks around supply chain headwinds, ESG unfavorability given its 40% oil and gas exposure, and the macro related stock pressures.

* Karas further adds that Flowserve trades at an 11% discount relative to the market and offers a favorable 4:1 risk return.

* Price Action: FLS shares closed higher by 3.73% at $35.60 on Thursday.