KeyBanc Raises Price Target on Eaton Corporation (ETN), Encourages Investors to Buy on Weakness
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Price: $317.10 --0%
Rating Summary:
20 Buy, 16 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 14 | Down: 17 | New: 4
Rating Summary:
20 Buy, 16 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 14 | Down: 17 | New: 4
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KeyBanc is maintaining its Buy rating on shares of Eaton Corporation (NYSE: ETN) and is raising its price target from $63 to $65.
At this time KeyBanc encourages investors to purchase shares of ETN.
The firm believes that ETN shares have underperformed based on concerns over Q1 incremental margin performance and news flow suggesting that the company is considering a large acquisition that would require an equity raise. It sees these issues as short term and already priced into the stock.
KeyBanc calls 2011 to 2013 a "Sweet Spot" for the company as its early and mid market stages are growing rapidly and its later cycle markets have clearly bottomed and are beginning to more meaningfully contribute.
An analyst at KeyBanc reports, "the Company now has a more meaningful footprint in higher growth markets, which coupled with its continued emphasis on innovation, should support a faster organic growth rate through the cycle. We see higher M&A activity driving incremental earnings growth and shareholder value creation that is not currently contemplated in our forecasts and consensus estimates."
For more ratings news on Eaton Corporation click here and for the rating history of Eaton Corporation click here.
Shares of Eaton Corporation closed at $52.02 yesterday.
At this time KeyBanc encourages investors to purchase shares of ETN.
The firm believes that ETN shares have underperformed based on concerns over Q1 incremental margin performance and news flow suggesting that the company is considering a large acquisition that would require an equity raise. It sees these issues as short term and already priced into the stock.
KeyBanc calls 2011 to 2013 a "Sweet Spot" for the company as its early and mid market stages are growing rapidly and its later cycle markets have clearly bottomed and are beginning to more meaningfully contribute.
An analyst at KeyBanc reports, "the Company now has a more meaningful footprint in higher growth markets, which coupled with its continued emphasis on innovation, should support a faster organic growth rate through the cycle. We see higher M&A activity driving incremental earnings growth and shareholder value creation that is not currently contemplated in our forecasts and consensus estimates."
For more ratings news on Eaton Corporation click here and for the rating history of Eaton Corporation click here.
Shares of Eaton Corporation closed at $52.02 yesterday.
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