Nomura Securities Maintains a 'Neutral' on Ingersoll-Rand (IR); Lowers PT & Estimates
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Price: $83.34 -1.12%
Rating Summary:
18 Buy, 16 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
18 Buy, 16 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Ingersoll-Rand (NYSE: IR) price target cut to $32.00.
Nomura analyst, Shannon O’Callaghan, said, "Amidst all of the obvious bad news for IR following Friday’s preannouncement, the good news is that the targets don’t matter anymore. We think the targets (margins up 200 bps/yr and $5+ of EPS in 2013) are so clearly out of reach as to make them irrelevant in calling the stock from here, which we actually think is a positive development that needed to happen. In our view, what matters now is whether IR can deliver $3+ of EPS in 2012. Unfortunately, we don’t have reason to expect $3+ at this point. We reduce our 2012 EPS estimate further below consensus to $2.90 from $3.05 and our 2011 EPS estimate to $2.70 from $2.90. We reduce our price target to $32 based on 11x our 2012 EPS estimate (prior $37 was based on 12x prior 2012 EPS estimate of $3.05). Given the magnitude of disappointment over the last several quarters, we expect extra pressure on the multiple."
For more ratings news on Ingersoll-Rand click here and for the rating history of Ingersoll-Rand click here.
Shares of Ingersoll-Rand closed at $28.09 yesterday.
Nomura analyst, Shannon O’Callaghan, said, "Amidst all of the obvious bad news for IR following Friday’s preannouncement, the good news is that the targets don’t matter anymore. We think the targets (margins up 200 bps/yr and $5+ of EPS in 2013) are so clearly out of reach as to make them irrelevant in calling the stock from here, which we actually think is a positive development that needed to happen. In our view, what matters now is whether IR can deliver $3+ of EPS in 2012. Unfortunately, we don’t have reason to expect $3+ at this point. We reduce our 2012 EPS estimate further below consensus to $2.90 from $3.05 and our 2011 EPS estimate to $2.70 from $2.90. We reduce our price target to $32 based on 11x our 2012 EPS estimate (prior $37 was based on 12x prior 2012 EPS estimate of $3.05). Given the magnitude of disappointment over the last several quarters, we expect extra pressure on the multiple."
For more ratings news on Ingersoll-Rand click here and for the rating history of Ingersoll-Rand click here.
Shares of Ingersoll-Rand closed at $28.09 yesterday.
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