Downgrade To Hold: Near-Term Re-Calibration Is Required

研报英文原文证据摘录

Downgrade To Hold: Near-Term Re-Calibration Is Required

Diversified Industrials, Automation & Robotics

Flowserve

TD SECURITIES (USA) LLC RATING CHANGE

June 24, 2026

Price: $79.98 (06/23/2026) Downgrade To Hold: Near-Term Re-

Price Target: $70.00 (Prior $85.00) Calibration Is Required

HOLD (2)

FROM BUY (1)

ESG SCORE: 67/100

Joe Giordano, CFA THE TD COWEN INSIGHT

646 562 1405

We see a tough setup into results where the outlook likely needs to be lowered, but there is an

joe.giordano@tdsecurities.com

apparent hesitancy to walk back commitments given the progress the company had made

Michael Anastasiou on track record ahead of the Iran war. We continue to like FLS's holistic positioning as global

646 562 1437 electricity generation needs to increase, but that is now very well understood and NT rev

michael.anastasiou@tdsecurities.com

growth likely challenged.

Chris Grenga, CFA

646 562 1387 Communication Last Q Was An Unforced Error That Likely Has Lingering

chris.grenga@tdsecurities.com Implications

Key Data The Iran conflict and the messaging around it has changed the risk/reward profile, particularly

Symbol NYSE: FLS now with shares recovering much of the initial decline from last Q. 2Q impact is expected

Beta: 1.24 to be $25MM (similar to 1Q), but conditions on the ground are not fundamentally changed,

52-Week Range: $92.04-$47.82 and there is no contingency built into 2H guide at this time. Orders were impacted by a larger

Market Cap: $10.2B amount ($50MM) in 1Q, and one could argue that the longer operations are constrained, the

Net Debt (MM): $1,098.0 revenue impact should gravitate towards the orders impact. At a minimum, we believe FLS

Cash/Share: $3.39 will have to incorporate some level of impact in 2H that is not currently contemplated ex pull

Dil.