UBS Maintains a 'Neutral' on Eaton Corporation (NYSE: ETN); Comments on ETN/CBE Acquisition
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Price: $318.79 +1.90%
Rating Summary:
20 Buy, 16 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 3 | Down: 3 | New: 2
Rating Summary:
20 Buy, 16 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 3 | Down: 3 | New: 2
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UBS maintains a 'Neutral' on Eaton Corporation (NYSE: ETN) price target of $40.00 (from $53.00).
Analyst, Jason Feldman, said, "Over the last decade or so, ETN has materially improved its portfolio mix with a shift towards less cyclical, later cycle businesses, with a more diverse geographic footprint...Despite these changes, ETN still trades far more like a “machinery” than an electrical equipment
/ multi-industry stock. CBE and other EE/MI stocks have traded at a substantial PE premium to ETN during “normal” economic periods (e.g. excluding recessions where ETN trades at inflated multiples on depressed earnings)."
"But we remain tactically cautious given near-term risks including: (1) Macro uncertainty and associated EPS risk; (2) possibility of an equity offering similar to what followed the last sizeable acquisition in ’08; and (3) near-term (2013) EPS dilution from the deal. Downside could be limited by a high dividend yield (~4%)."
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 $37.78 yesterday.
Analyst, Jason Feldman, said, "Over the last decade or so, ETN has materially improved its portfolio mix with a shift towards less cyclical, later cycle businesses, with a more diverse geographic footprint...Despite these changes, ETN still trades far more like a “machinery” than an electrical equipment
/ multi-industry stock. CBE and other EE/MI stocks have traded at a substantial PE premium to ETN during “normal” economic periods (e.g. excluding recessions where ETN trades at inflated multiples on depressed earnings)."
"But we remain tactically cautious given near-term risks including: (1) Macro uncertainty and associated EPS risk; (2) possibility of an equity offering similar to what followed the last sizeable acquisition in ’08; and (3) near-term (2013) EPS dilution from the deal. Downside could be limited by a high dividend yield (~4%)."
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 $37.78 yesterday.
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