Large multi-industrial conglomerates like Dover (DOV) can often be "black boxes" to individual investors, as the companies don't often publicly provide a lot of detail on the individual segments and businesses, and their IR teams are almost never interested in taking the time to walk individual investors through those details. With that in mind, I really appreciate events like Dover's recent investor meeting highlighting its Pumps and Process Solutions (P&PS) business.
In addition to what I'd call "moderately bullish" commentary on the pace of the nascent end-market recovery, Dover made it clear that M&A is a key strategic priority and that it views biopharma as a key growth market. I agree wholeheartedly, and while I think investors could be in for some sticker shock on deal multiples in this space, I think it's a great move to focus on "picks and shovels" solutions for the biopharma industry.
While Dover's guidance gives me more confidence on my numbers for the remainder of 2020, it wasn't enough to prod me to a meaningful upward revision. With the shares up another 10% since my last update, basically in line with the sector and about 5% better than the S&P 500, I don't really see the stock as cheap, but it's a high-quality in a strong sector.
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