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UPDATE - UBS Downgraded Cooper Industries (CBE) to Neutral; Valuation Call

January 26, 2012 11:53 AM EST
CBE Hot Sheet
Rating Summary:
    4 Buy, 11 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
UPDATE - UBS downgraded Cooper Industries (NYSE: CBE) from Buy to Neutral. PT raised from $57 to $62.

UBS analyst said, "Since the market trough in mid-Aug. ‘11, CBE has outperformed the XLI and the S&P 500 by ~19% and ~26%, respectively. CBE now trades at a greater premium to its historical valuation than any stock in the group. While CBE is late cycle with substantial balance sheet optionality, we see limited 12-month upside potential for the stock given roughly average ‘12 EPS growth prospects and a premium multiple. We maintain a favorable view of both CBE’s long-term prospects and management; however, at current valuations, we simply see better opportunities elsewhere in the multi-industry space."

UBS raises FY12 EPS from $4.25 to $4.30, FY13 lowered slightly from $4.78 to $4.75.

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