Barclays Maintains an 'Equalweight' on Ingersoll-Rand (IR); Q3: Stock Sell-off Seemed Justified

Barclays maintains an 'Equalweight' on Ingersoll-Rand (NYSE: IR) price target of $36.00.

Barclays analyst says, "We tend to recommend "turnaround" stories but admittedly we are normally too early. It looks to us that this one will take a while to sort out - partially because many of its businesses are still quite strong and with good margin levels."

"What happened in quarter? Core growth of 3% falls far short of industrial peers at
7-11% so far. Order growth of just 2% has slowed vs. earlier in the year (vs. 6% in
2Q and 11% in 1Q). As for segments, Climate Solutions (commercial Trane, Thermo-King) was better than we had expected, while Residential Solutions and Industrial Technologies both missed our recently lowered numbers. EPS of $0.81 was just above revised guide of $0.77-0.80 but FY2011 revised down to $2.70-2.76 from $2.70-2.80. Our 2012E stays at below Street levels of $3.00 which may prove optimistic."

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 $27.38 yesterday.

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