Nomura Securities Maintains a 'Neutral' on Cooper Industries (CBE); From Transformation Story to Growth Story

Nomura Securities maintains a 'Neutral' on Cooper Industries (NYSE: CBE) price target of $54.00.

Nomura analyst, Shannon O’Callaghan, says, "We continue to view Cooper as in a transition from a transformation story to a growth story, and in 2012 Cooper has struggled to effectively communicate the impact of its ramping growth spending on incremental margins. We think it is solving that problem, but given a modest 4Q outlook we may have to wait until 2012 to see what the pay-off will be from the 2011 growth investments. If CBE doesn’t beat 4Q, we view mid-single-digit core growth and double-digit EPS growth in 2012 as more of a “show me” story. We raise our 2011 EPS estimate to $2.83 (high-end of company guidance) and hold 2012E at $4.00."

For more ratings news on Cooper Industries click here and for the rating history of Cooper Industries click here.

Shares of Cooper Industries closed at $50.65 yesterday.

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