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UBS Maintains a 'Neutral' on Eaton Corp (ETN); Stock is Likely to Remain Volatile if Macro Uncertainty Persists

January 27, 2012 11:44 AM EST
ETN Hot Sheet
Rating Summary:
    10 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 7 | New: 26
UBS maintains a 'Neutral' on Eaton Corporation (NYSE: ETN) price target raised from $48 to $51.

UBS analyst said, "ETN's stock underperformed yesterday after reporting a ~$0.10 4Q sales driven op. miss and providing 2H12 weighted guidance. Mgmt believes weakness is temporary (driven mostly by large project delays) and expects continued strength in the U.S., a mild recession in Europe, and continued softness in Asia; however, it anticipates a 2H recovery in the latter two regions. Bookings improved in Electrical ROW and Asia last month (although not necessarily a trend), backlog in Electrical Americas remains solid, non-res is improving, and stimulus is expected to buoy emerging markets later this yr."

UBS lowers FY12 EPS estimate from $4.55 to $4.40 and FY13 from $5.43 to $5.00.

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 $48.93 yesterday, with a 52 week range of $33.09-$112.98.


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