BofA Securities has raised its 12-month price target on Flowserve Corp. (NYSE:FLS) to $90.00 from $80.00 but left its stock rating at Neutral, citing better-than-expected quarterly results and margin improvement across the business.
Flowserve shares have responded with strength, trading around $84.44 and clearing a prior 52-week high of $80.90. The stock has climbed roughly 47.87% over the last six months.
Quarterly results and drivers
The revision follows Flowserve’s fourth-quarter 2025 report, in which the company posted adjusted earnings per share of $1.11. That outcome outperformed BofA’s $0.90 estimate and the consensus estimate of $0.94. BofA pointed to healthier-than-expected margins in both the Flowserve Pump Division and the Flow Control Division as the primary reason for the upside. Total margins expanded by 420 basis points year-over-year, a change the bank attributed to execution of the company’s 80/20 initiative.
Flowserve issued initial adjusted EPS guidance for 2026 in a range of $4.00 to $4.20. That guidance sits above BofA’s $3.89 estimate and is at or above prior consensus of $4.00. The company also forecast mid-single digit bookings growth for 2026 and signaled that large energy projects are expected to accelerate in the second half of the year.
Valuation and market signals
BofA’s revised price target is derived from applying a 12x EV/EBITDA multiple to 2027 estimates, an upgrade from its earlier 11x multiple. The firm cited the potential for a peer-rerating as the basis for increasing the multiple; by contrast, the peer average multiple stands at 16x.
InvestingPro data included in the coverage notes that Flowserve’s current EV/EBITDA is 19.29x. The company trades at a P/E ratio of 24.62 and carries a PEG ratio of 1.34, figures that indicate a modestly low P/E relative to near-term earnings growth. InvestingPro’s analysis also suggests the stock may be slightly overvalued relative to its Fair Value, and its RSI currently indicates the shares are in overbought territory.
Flowserve has maintained dividend payments for 19 consecutive years, a point the bank and market observers continue to note.
Additional context and market reception
While the EPS result and margin expansion were clear positives, the company recorded a slight revenue miss in the quarter. No recent announcements were made concerning mergers or acquisitions, and there were no reported analyst upgrades or downgrades accompanying the result.
Investors seeking deeper analysis can access InvestingPro’s Pro Research Report on Flowserve, one of the more than 1,400 U.S. equities covered on the platform. The InvestingPro coverage includes valuation context, technical indicators, and additional investment-related tips specific to Flowserve’s current market standing.
What the BofA change implies
BofA’s move to raise its target reflects a reassessment of Flowserve’s earnings power and margins following the fourth-quarter beat and the company’s initial 2026 outlook. However, by keeping its rating at Neutral, the firm signals that upside potential is balanced by valuation considerations and market dynamics. Investors should weigh the stronger operational performance against technical indicators and valuation metrics that imply the stock may be priced with some premium.
Clear summary
BofA increased its price target on Flowserve to $90 from $80 after the company delivered a fourth-quarter 2025 EPS beat driven by margin improvements and issued 2026 guidance above BofA’s estimate. The bank retained a Neutral rating, and InvestingPro data flags overbought technicals and a possibly elevated valuation.