Standard & Poor's Ratings Services maintains a Hold recommendation on shares of Dresser-Rand Group Inc., Houston (NYSE: DRC).

S&P analyst Stewart Glickman says fourth quarter EPS of $0.94 vs. $0.51 is $0.16 above S&P’s estimate. Results were led by improved new unit sales with total 2008 bookings at $2.5 billion, and 2008 year-end backlog was $2.25 billion, of which about 78% is expected to ship in 2009.

S&P notes roughly 80% of total backlog is driven by new units, and although visibility for 2009 remains solid by virtue of current backlog, the firm see risk to 2010 results, given the current restrained customer capex environment.

S&P raised its 2009 EPS estimate by $0.19 to $2.50, and on relative metrics increased its target price by $2 to $25.

Dresser-Rand designs, manufactures, and markets rotating equipment and services to the oil, gas, petrochemical, and process industries worldwide.