Analysts Are Bullish on These 10 Stocks for 2025, Here’s Why

6. Flowserve Corporation (NYSE:FLS)

Flowserve Corporation is a designer, manufacturer, distributor, and supporter of industrial flow management equipment. The company operates through the Flow Control Division (FCD) and Flowserve Pump Division (FPD) segments.

Analysts at financial services firm Baird upgraded the company from Neutral to Outperform and assigned it a target price of $71. They think FLS’s current valuation does not fully represent its growth potential. A 530-550 basis point improvement in margins by 2027 could significantly change the company’s profitability. This margin improvement is driven by steady revenue growth, strategic initiatives aimed at enhanced operational efficiency, sustainable pricing, and a strong backlog. The research firm predicts revenue growth to remain strong, fueled by the consistent demand:

“Flowserve’s improving free cash flow conversion and growing track record of operational execution further strengthen the bullish case. The company’s long-term adjusted EBIT margin target of about 16% is increasingly achievable with additional upside potential.”

The company presented a positive future outlook of the company based on the recent Q4 2024 results. As per the guidance, the company forecasts 3% to 5% organic sales growth in 2025. The anticipated adjusted EPS for 2025 is $3.10 to $3.30, representing a 22% growth at the midpoint YoY, compared to the previous year’s result.