US Electrical Equipment & Multi-Industry EE/MI Morning Note - Delightful Dover 2Q Preview; +Positioning

研报英文原文证据摘录

US Electrical Equipment & Multi-Industry EE/MI Morning Note - Delightful Dover 2Q Preview; +Positioning

Global Research

23 June 2026ab

US Electrical Equipment & Multi-Industry Equities

AmericasEE/MI Morning Note - Delightful Dover 2Q

Preview; +Positioning Industrial, Diversified

Amit Mehrotra

Analyst

amit.mehrotra@ubs.com

DOV Preview- We are positive on Dover heading into 2Q results next month. We think +1-201-352 1410

the company's strong order momentum last quarter can carry into 2Q, which likely

Neal Burk

translates to positive revisions to growth and earnings expectations. We view DOV as a

high quality diversified industrial that benefits from the broader cyclical recovery, with neal.burk@ubs.com

pockets of outsized growth (e.g., small but growing data center exposure). Shares trade +1-212-713 4066

at a 21x NTM P/E, which values the company at a below-average multiple despite an

Pratap Singh

above-average return on tangible invested capital (UBSe). And we expect organic order

growth to accelerate. pratap-za.singh@ubs.com

+1-212-821 3112

On orders, our view is that the broad-based momentum from 1Q continues in 2Q. We Zachary Walljasper

expect a seasonal step down in book to bill from 1Q's very strong 1.2x, but think that Associate Analyst

1.1x+ is a reasonable expectation for 2Q. We model 5% organic sales growth year over zachary.walljasper@ubs.com

year in 2Q, similar to 1Q. Our expectations for 1H sales and bookings give us confidence +1-212-713 9829

that 2026 organic sales guidance will increase from DOV's current range of 3-5%. On

margins, we model 29% incremental margins in 2Q which would bring 1H to 27%,

followed by mid-30% incrementals in 2H. The company continues to endure mix and

mix within mix headwinds from outsized growth in its CS&T segment, but we think