UBS maintains a 'Buy' on United Technologies (UTX); Detailing GR Accretion; Reducing Standalone Estimates

UBS maintains a 'Buy' on United Technologies (NYSE: UTX) price target lowered from $101 to $91.

UBS analyst says, "We see dilution in 2012 on restructuring and deal (acquisition of Goodrich (NYSE: GR)) costs ($0.15-0.20), along with higher amortization ($0.15), higher R&D ($0.05) assuming UTX expenses all instead of capitalizing, higher interest expense ($0.15 assuming 3% on incremental borrowings) and higher share count ($0.25-0.30), partially offset by roughly $700-800M EBIT contribution ($0.60)."

"We have reduced our standalone 2012 UTX EPS estimate by 7% to $5.95 (from $6.40) to reflect slower organic growth, higher pension expense and suspension of share repurchase through 2012. We now forecast 3% organic growth driven almost entirely by commercial aero OE and aftermarket upside."

For more ratings news on United Technologies click here and for the rating history of United Technologies click here.

Shares of United Technologies closed at $68.92 yesterday.

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