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Wells Fargo Upgrades Ingersoll-Rand (IR) to Outperform; Near and Long-Term Catalysts

February 9, 2012 7:28 AM EST
IR Hot Sheet
Rating Summary:
    8 Buy, 10 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Wells Fargo upgraded Ingersoll-Rand (NYSE: IR) from Market Perform to Outperform, price target range raised to $44-46 from $30-32.

Wells analyst says, "We are admittedly not early to this name, but we continue to believe there is a potential double over the next four to five years given near-term catalysts (i.e., a potential for upside to the company’s 2012 guidance) that should enable investors to consider the longer-term potential of sustained earnings growth over the next several years. The stock has realized good appreciation year to date (i.e., up 24.6% versus S&P 500 up 7.3%). Our longer-term expectation for the stock to potential double is based on 13-14x potential $5.50-6.00 in earnings power based on $20-22 billion revenue, 13.5-14% EBIT margins, and recently reduced share count."

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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