Cowen analyst Joseph Giordano upgraded Flowserve to Outperform from Market Perform and increased its price target to $55 from $41 saying margins have troughed and risk/reward appears attractive. The analyst expects margins to improve 160bps though 2018 from incremental cost savings and further mix shifts towards higher margin aftermarket business and for cash metrics to improve substantially as OE backlog runs off, mix shifts to shorter-cycle business, and the restructuring plan wraps up. Giordano believes sees very little chance of FY17 earnings guidance of $1.55-$1.85 falling below the range and believe the high-end is likely.