Nomura Securities Maintains a 'Neutral' on Cooper Industries (CBE); Don't See Offer Going Much Higher

May 22, 2012 9:36 AM EDT
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Price: $74.50 --0%

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    3 Buy, 14 Hold, 0 Sell

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Nomura Securities maintains a 'Neutral' on Cooper Industries (NYSE: CBE) price target of $68.00.

Analyst, Shannon O'Callaghan, said, "The deal premium looks good on the day, but is modest relative to our expectations. As of 5/2, the stock was at $64, so the premium paid is much higher than the 12% premium to the recent 5/2 price, as well as the 6% premium to our $68 price target. Given that our case for the ongoing entity was for $68, and we think the bull case for the ongoing entity was north of $70, we would have expected a higher price for Cooper in a take-out. We don’t have visibility into another buyer paying more, but given Cooper’s electrical products positions it is logical that others might be interested, but we think those buyers would have already taken a look. On the conference call, management noted that both boards unanimously approved the deal."

(NOTE - Eaton (NYSE: ETN) announces $68 per share offer to acquire CBE)

For an analyst ratings summary and ratings history on Cooper Industries click here. For more ratings news on Cooper Industries click here.

Shares of Cooper Industries closed at $69.88 yesterday.

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