Donaldson Looks to Spur Profitable Growth Through New Life Sciences Segment; Maintain $59 FVE

Narrow-moat Donaldson posted 3% sales growth year over year, despite currency headwinds of 4%, and achieved the highest quarterly operating margin in six years. Favorable pricing and input cost stabilization allowed adjusted operating margin to expand 330 basis points year over year. We reiterate our $59 fair value estimate as our long-term outlook for Donaldson is unchanged.