Deutsche Bank Downgrades Eaton Corporation (ETN) to Hold

Deutsche Bank downgraded Eaton Corporation (NYSE: ETN) from Buy to Hold with a price target of $77.00 (from $90.00).

Analyst John G. Inch said, "Eaton reported mixed 2Q14 results and lowered guidance -marking another quarter (in a series) characterized by missed results and/or lowered expectations. Moreover, the company’s guidance for 2H14 continues to carry risks, in our opinion, due to sequential (Electrical) growth rates that are expected to move higher, among other factors."

"Perhaps more importantly, the company threw cold water on the opportunity for further meaningful portfolio change citing tax code items that require Eaton to wait 5 years after the close of the Cooper acquisition (Nov 30/12). Previously, the prospects for significant portfolio action had provided a basis of our ETN investment thesis," added the analyst.

For an analyst ratings summary and ratings history on Eaton Corporation click here. For more ratings news on Eaton Corporation click here.

Shares of Eaton Corporation closed at $70.51 yesterday.

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