UPDATE: BMO Capital Starts Ingersoll-Rand (IR) at Outperform

(Updated - July 13, 2016 9:12 AM EDT)

BMO Capital initiated coverage on Ingersoll-Rand (NYSE: IR) with an Outperform rating and a price target of $80. Analyst Joel Tiss sees a higher level of organic growth and strong margin expansion.

"A number of investors' concerns largely boil down to end market and execution risks. However, we point to the following bigger positives: 1) a reasonably valued stock; 2) huge upside potential for returns; and 3) HVAC orders and backlog that provide great visibility through 2017. New products are energizing growth, and management's focus on lean initiatives and structurally improving its operating processes, is systematically transforming the profitability of the company," said Tiss.

"These factors, combined with pent-up demand and the push into parts and services, are driving outperformance that is underpinning double-digit EPS growth, allowing for consistency in meeting (or beating) expectations and creating shareholder value," added the analyst.

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 $66.94 yesterday.

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