DXP Enterprises initiated with "buy"

06/21/04 - JM Dutton & Associates

NEW YORK, June 21 (New Ratings) - Analyst Robert M Davis of JM Dutton initiates coverage of DXP Enterprises (DXPE) with a "buy" rating. The 12-month target price is set to $6.75.

In a research note published this morning, the analyst mentions that the company is poised to generate healthy earnings growth in the forthcoming quarters due to its flexible range of supply chain management packages. The analyst expects the company to return to rapid revenue growth in the long term through acquisitions and internal growth, the analyst says. Given DXP Enterprises’ healthy growth prospects, the company's stock is undervalued, JM Dutton believes.