Friday, KeyBanc Capital upgraded Colfax Corp. (CFX) shares to Buy from Hold with a price target of $11. The brokerage lowered its 2009 EPS estimate to $1.00 from $1.05, and its 2010 estimate to $0.80 from $0.85.
Analyst Jeffrey Hammond said that he has the opportunity to spend time with CFX's CEO John Young meeting with investors. While near-term demand remains challenged in its Commercial Marine and General Industrial businesses, the analyst walked away with increased comfort that 2010 will not represent a "cliff event" for CFX's earnings momentum in its longer cycle businesses.
Additionally the analyst believes the company is pro-actively and effectively managing the cost-side of its business, which should minimize margin degradation on any sales decline. At the same time, the analyst recognizes that CFX shares have underperformed its industrial peers over the past few months (up 5% vs. peer group up 10% and S&P 500 up 11% since April 1, 2009).
Given the shares' attractive valuation coupled with our increased confidence in 2010 earnings resiliency, the analyst upgraded the stock to Buy and is establishing a price target of $11, which represents 43% upside from June 25 close. That said, demand in General Industrial and Commercial Marine appears more challenged than the analyst's initial assumptions.
Currently, CFX is up $0.11 or 1.43% and trading at $7.80.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.