Boenning & Scattergood Announces Investment Opinion on The Gorman-Rupp Company.WEST CONSHOHOCKEN, Pa. -- Boenning & Scattergood initiates coverage of The Gorman-Rupp Company (AMEX AMEX See: American Stock Exchange :GRC GRC Greece (ISO Country code) GRC Glenn Research Center (NASA) GRC Governance, Risk and Compliance GRC Gendarmerie Royale du Canada (RCMP - Canada) GRC John H. ) with a Market Perform rating. Gorman-Rupp manufactures a wide variety of pumps, roughly 75% of which are used to move water for one purpose or other. Key end-markets include municipal, industrial, fire protection, OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and , petroleum, construction, government, and military. * Gorman-Rupp well positioned for repair & rehabilitation of water infrastructure. Though Gorman-Rupp serves a wide array of end-markets, among the company's most important customers are municipal water systems, which utilize a vast array of pumps throughout their operations. The EPA EPA eicosapentaenoic acid. EPA abbr. eicosapentaenoic acid EPA, n.pr See acid, eicosapentaenoic. EPA, n. estimates that substantial spending will be required in the coming decades to shore up water systems - with the bulk of this spending going toward distribution infrastructure, including pumps. This spending should provide a tailwind for pump makers, including Gorman-Rupp, for the foreseeable future. * GRC shares surged along with earnings in 2006; Growth should moderate in 2007. GRC shares more than doubled in 2006, placing them among the water group's top performers, and the stock now sports a forward P/E forward P/E The price-earnings ratio of a firm's common stock calculated as the current stock price divided by estimated earnings per share for the coming year. Compare trailing P/E. multiple of 22 times - well ahead of the peer group. While we expect earnings to expand at a still-healthy 13% clip in 2007, multiple expansion will be difficult in the face of this sharp earnings growth deceleration deceleration /de·cel·er·a·tion/ (de-sel?er-a´shun) decrease in rate or speed. early deceleration , and we initiate coverage Initiate coverage (1) Firm is now followed by analysts at a particular securities house; (2) Indication to cover short position by purchasing the underlying stock (this cancels out the short position). at Market Perform. For access to the full report, please contact us via email at research@boenninginc.com or by phone at 610.684.5419 About Boenning & Scattergood: Founded in 1914, Boenning & Scattergood, Inc. is the oldest independently owned investment securities firm in the Philadelphia region. The firm offers a full compliment of investment services to institutional, retail and corporate clients, including research, sales, trading, investment banking and public finance. For more information, please visit www.boenninginc.com. This release is neither an offer to sell nor a solicitation to buy any securities mentioned herein. Please refer to the full report, which is available upon request, for additional details and disclosures. |
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