Teledyne Technologies (NYSE:TDY) was lifted to Buy from Neutral at Goldman Sachs Monday, with a new price target of $495, up from $423 per share.
Goldman analysts told investors in a note that the pullback in "cash flow compounder" Teledyne's shares provides an opportunity for investors. The company's shares are up more than 4% following the upgrade. However, it is down 9% in the last six months.
The analysts sang the praises of the stock, stating: "TDY is one of the highest quality, most consistent, best-managed companies we cover that compounds cash flow over time."
"The stock has pulled back recently to relative valuation lows, just as the balance sheet is nearing full force again for further deployment post-FLIR integration, while the core organic fundamental picture remains strong."
Goldman Sachs sees upside to TDY's consensus earnings expectations, with the analysts adding that they find its current valuation attractive.