We have recently concluded our diligence process on a new idea, Flowserve Corporation (NYSE:FLS - $35.49) and decided to initiate coverage of the stock, given our skeptical view of the company's book-to-bill trajectory and their end market exposure, which is heavily skewed towards downstream oil & gas customers.
Because of a rapid sell-off in the stock over the past several weeks and Antrim's upcoming travel plans, we felt it was imperative that we initiate coverage in a timely fashion. To that end, we have issued a research memo formally announcing our coverage initiation and outlining our thoughts on the case, in order that we can begin to discuss it with clients.
Because this initiation is shorter in length than our typical, comprehensive initiation reports, it will be followed at a later date with a supplemental addendum that covers some additional detail and answers any questions that you may have.
