Dover Corporation

This is our first report on Dover Corporation, a multifaceted international manufacturer offering cutting-edge machinery and parts, consumables, aftermarket components, software and digital solutions, and support services. The company’s last result was an all-around beat resulting from a good execution by the management and better price dynamics. Demand remained favorable, with 4 out of 5 segments reporting organic growth throughout the quarter. Despite the growing macroeconomic unpredictability, they are investing money in a number of businesses that are anticipated to grow rapidly due to secular tailwinds. Revenue from Engineered Products increased organically by 18% in the quarter due to broad-based performance across the portfolio in key geographies as well as pricing changes. Volumes for the company’s marking and coding printers and replacement parts in Imaging & Identification have improved significantly. Demand for services, consumables, and pricing decisions helped the quarter be profitable. Recently, they also completed the acquisition of Malema Engineering, which adds a fantastic technology to their portfolio of biopharma products. We initiate coverage on the stock of Dover Corporation with a ‘Hold’ rating.