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UBS Maintains a 'Buy' on Ingersoll-Rand (IR); Guidance Reflects Limited Recovery in '12

February 9, 2012 2:51 PM EST
IR Hot Sheet
Rating Summary:
    8 Buy, 9 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 7 | New: 26
UBS maintains a 'Buy' on Ingersoll-Rand (NYSE: IR) price target raised from $41 to $42.

UBS analyst says, "IR provided initial ‘12 EPS guidance of $2.90-$3.10, below the cons. of $3.12, while the 1Q outlook fell well short of expectations ($0.20-0.26 vs. consensus $0.45 and $0.35 in 1Q11). However, guidance reflects $0.30 of restructuring and investments ($0.16 in 1Q) that we doubt was fully reflected in the consensus. We see upside to FY12 guidance, and note that mgmt’s outlook for the macro environment next year is relatively muted relative to other industrial companies, and reflects no growth in the commercial and residential construction related end markets."

UBS lowers FY12 EPS estimate from $3.30 to $3.20 and FY13$4.00 to $3.65.

For an analyst ratings summary and ratings history on Ingersoll-Rand click here. For more ratings news on Ingersoll-Rand click here.

Shares of Ingersoll-Rand closed at $37.99 yesterday, with a 52 week range of $25.86-$52.33.


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