Flowserve (FLS) delivered a solid Q2 operating beat with near-record bookings, extending revenue visibility into 2027, RBC Capital Markets said in a Thursday note.

"We are impressed with management's ability to raise EPS guidance while absorbing ~$60 million of YTD Middle East sales headwinds," the report said.

The report said the guidance assumes a sizable H2 ramp, with backlog coverage, seasonal volume strength in Q4, aftermarket momentum, and fixed cost reduction backing its confidence.

On the Middle East, the note said it remains a near-term headwind but is increasingly positioned as a potential medium-term growth catalyst.

RBC maintained its outperform rating while raising its price target to $94 from $91.

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