Analyst Note| Joshua Aguilar |
Narrow-moat Dover’s results came in below our expectations. That said, we think the 7% selloff during the trading day was an overreaction to the company’s first-quarter print. While we made some tweaks to the downside to account for management’s revised top-line guidance, time value of money more than offset these effects. Furthermore, our long-term view remains unchanged. Therefore, we maintain our $169 per share fair value estimate, which implies a multiple of roughly 20 times our 2022 adjusted EPS projections. With the selloff, long-term investors can own a high-quality firm that rarely trades at an attractive price, particularly under this proven management team.