Goldman Sachs raised its price target for Flowserve Corp. (NYSE:FLS) to $88.00 and retained a Neutral rating on the industrial flow-control equipment maker, citing improved visibility into margins and backlog conversion. The move follows a period of strong share appreciation and better-than-expected quarterly results that have drawn renewed analyst attention.
Flowserve shares have climbed roughly 65% over the past six months and recently reached new 52-week highs. Market technicals point to elevated momentum: InvestingPro data shows the stock's relative strength index is in overbought territory, and the shares trade at a price-to-earnings ratio of 32.8.
The timing of Goldman Sachs' target increase aligns with Flowserve's fourth-quarter 2025 segment EBIT performance, which outpaced FactSet consensus by 9%. Both of the company's operating units exceeded expectations, with the Flowserve Pump Division beating by 8% and the Flow Control Division by 12%.
Operational metrics reported for the quarter included total bookings of $1.2 billion and a book-to-bill ratio of 0.99x. Aftermarket bookings were stronger than $600 million, registering at $680 million and rising 10% year-over-year. Despite a modest revenue shortfall on the quarter, Flowserve posted an adjusted earnings per share of $1.11, well above the $0.94 forecast.
For fiscal 2026 the company provided adjusted EPS guidance of $4.00 to $4.20, based on management's outlook for total organic revenue growth of 1% to 3%. Flowserve also published longer-range financial targets through 2030, including a mid-single-digit organic sales compound annual growth rate from 2025 to 2030, approximately 20% adjusted operating margins by 2030, and a double-digit adjusted EPS compound annual growth rate for 2025 to 2030. The company indicated EPS could exceed $6 by 2030 under that target framework.
Responding to Flowserve's results and guidance, Goldman Sachs increased its EPS estimates for 2026 and 2027 to $4.10 and $4.55 respectively, and introduced a 2028 EPS estimate of $5.00. The firm attributed the revisions to greater conviction in margin durability and the conversion of longer-cycle backlog into revenue.
Other broker reactions have mirrored the positive recalibration. RBC Capital lifted its price target to $96, citing operational execution and encouraging 2026 guidance. Stifel raised its target to $97, noting that the company’s guidance exceeded consensus expectations. BofA Securities adjusted its target to $90, acknowledging Flowserve’s earnings beat relative to both its own estimates and consensus forecasts. All three firms retained favorable ratings on the stock. Analysts have pointed to the company’s strategic initiatives and margin improvements as drivers of the optimistic tone.
Summary of key data points:
- Goldman Sachs price target: $88.00; rating: Neutral.
- Share performance: roughly 65% gain over the past six months; new 52-week highs.
- Valuation and technicals: P/E of 32.8; RSI indicates overbought conditions.
- Q4 2025 segment EBIT: 9% above FactSet consensus; Pump Division +8% vs expectations; Flow Control Division +12% vs expectations.
- Quarterly bookings: $1.2 billion; book-to-bill: 0.99x; aftermarket bookings: $680 million, up 10% year-over-year.
- Q4 adjusted EPS: $1.11 vs forecast $0.94; slight revenue miss.
- FY2026 adjusted EPS guidance: $4.00 to $4.20; organic revenue growth guidance: 1% to 3%.
- 2030 targets: mid-single-digit organic sales CAGR (2025-2030); about 20% adjusted operating margins by 2030; double-digit adjusted EPS CAGR (2025-2030); EPS potential above $6 by 2030.
- Goldman EPS estimates: 2026 $4.10; 2027 $4.55; 2028 $5.00.
The combination of stronger margins, a sizable aftermarket business showing year-over-year growth, and a book-to-bill ratio near parity shaped the analyst responses and the revisions to earnings forecasts. While several brokers raised price targets, Goldman Sachs elected to keep a Neutral stance even as it increased its target and lifted EPS projections.