Atmus Filtration is worth buying following its initial public offering, Goldman Sachs said.
Analyst Jerry Revich initiated coverage of the filtration stock, whose initial public offering took place in late May, at buy.
However, he said the company can expand outside the core market that's valued at $15 billion into the broader industrial filtration market valued at $45 billion.
And the already existing internal IP should be useful as the filtration technology in the two markets is similar, he said.
"In our view, as a standalone company, Atmus will further build on its strengths," Bank of America analyst Andrew Obin said in his upgrade.
Persons:
Goldman Sachs, Jerry Revich, Revich, Atmus, Wells Fargo, Andrew Obin, CNBC's Michael Bloom
Organizations:
Cummins, JPMorgan, Bank of America
Locations:
Friday's, Cummins