10:55 AM EST, 11/14/2025 (MT Newswires) -- Flowserve ( FLS ) faces continued weakness across its core oil and gas and chemicals end markets into 2026, BofA Securities said in a Friday note.

Leading indicators across those markets, which account for about 60% of Flowserve's ( FLS ) sales, continue to soften, suggesting organic growth will likely remain under pressure next year, analysts said. The firm expects Flowserve's ( FLS ) organic sales to lag expectations into 2026, consistent with its historical correlation to rig-count trends.

BofA said margins remain a relative strength, with the company positioned for about 120 basis points of year-over-year expansion next year. While margin performance has outpaced since 2022, it still lags peers over a longer horizon, the analysts said.

The firm added that near-term nuclear upside is already reflected in the stock. "While we think FLS is clearly a beneficiary longer-term and nuclear is accretive to overall margins, projects are long-cycle," it said.

BofA downgraded Flowserve ( FLS ) to neutral from buy and raised its price objective to $73 from $60.

Shares of Flowserve ( FLS ) were down 1% in recent trading.

Price: 67.29, Change: -0.71, Percent Change: -1.04