Buckingham Research Maintains 'Strong Buy' on Eaton Corp (ETN), Lowers PT
More News related to ETN
- Eaton To Announce Second Quarter 2009 Earnings On July 20; Live Webcast Scheduled For 10 a.m.
- Notable Analyst Rating Changes 6/26: ITW, DB, AAUK Upgraded; JAZZ, OSG, TWB Downgraded
- Citi Initiates Coverage on Eaton (ETN) with a Buy
- Fitch Affirms Eaton's IDR at 'A-'; Outlook Revised to Negative
- Eaton Names Yannis P. Tsavalas President - Europe, Middle East And Africa; Jean-Pierre Lacombe Announces Retirement
Buckingham Research maintains 'Strong Buy' rating on Eaton Corp (NYSE: ETN), lowers price target from $108 to $102.
Buckingham analyst says, "In our view, Eaton continues to have a number of positive growth drivers (U.S. Heavy Truck market growth, acquisition integration benefits, strong participation in power quality and infrastructure markets) relative to the broad economy, as reflected in our expectation for 15% EPS growth this year and 11% EPS growth next year. While we note current year and June quarter results include a $0.05 per share net EPS benefit from non-recurring items, investor negative reaction to “poor quality” current results and to modestly lowered expectations appears to us sharply excessive. At a current valuation of 9X current year estimated EPS and 6.5X current year EBITDA, ETN shares appear a compelling value. Upside to our 2009 EPS estimate exists based on management view of potential 4%-5% end market growth and an EPS increase in the 15%-20% range."
Eaton Corporation (Eaton) is a diversified industrial manufacturer. Eaton operates through four business segments: Electrical, Fluid Power, Truck and Automotive. The Company sells its products to customers in more than 150 countries. [SM]
Related Categories
Analyst CommentsStocks Mentioned
-15.34Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
