Donaldson initiated with a Neutral on valuation at Citi

Citi analyst Timothy Thein last night initiated coverage of Donaldson with a Neutral rating and $66 price target, implying 8% total return potential. The company’s high aftermarket content, diverse end markets, and low leverage “provide good defense in an uncertain macro environment,” the analyst tells investors in a research note. Donaldson is a high-quality player in the attractive segment of filtration, but the stock’s risk/reward trade-off is fairly balanced at current levels, says the firm. It sees less room for valuation upside at current levels.