Barclays Maintains an 'Overweight Eaton (ETN); 3Q11 Review: Thesis Remains Intact Despite Mixed Results
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Price: $451.51 -0.4%
Rating Summary:
30 Buy, 15 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
30 Buy, 15 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays maintains an 'Overweight Eaton Corporation (NYSE: ETN) price target of $53.00.
Barclays analyst says, "Despite a relatively mixed 3Q11, we continue to favor ETN's leverage to faster growing geographies/end markets early in its cyclical improvement, which we think should drive relatively solid revenue/earnings growth over the longer term. It seems that many of the company's core end markets are continuing to slowly improve (even in a slow/choppier global economic recovery), underscored by relatively solid results in ETN's Auto, Truck, and Aerospace segments."
"We reiterate our price target based on 12x our 2012 EPS estimate of $4.45. We maintain our 2011 and 2012 EPS estimates of $4.00 and $4.45, but tweak our segment forecasts to account for stronger than expected margin/growth outlook in the Truck business, offset by continued weakness in Electrical ROW. We lower our 2012 share count, but this change is offset by a modest increase in our pension expense estimate."
For more ratings news on Eaton Corporation click here and for the rating history of Eaton Corporation click here.
Shares of Eaton Corporation closed at $44.23 yesterday.
Barclays analyst says, "Despite a relatively mixed 3Q11, we continue to favor ETN's leverage to faster growing geographies/end markets early in its cyclical improvement, which we think should drive relatively solid revenue/earnings growth over the longer term. It seems that many of the company's core end markets are continuing to slowly improve (even in a slow/choppier global economic recovery), underscored by relatively solid results in ETN's Auto, Truck, and Aerospace segments."
"We reiterate our price target based on 12x our 2012 EPS estimate of $4.45. We maintain our 2011 and 2012 EPS estimates of $4.00 and $4.45, but tweak our segment forecasts to account for stronger than expected margin/growth outlook in the Truck business, offset by continued weakness in Electrical ROW. We lower our 2012 share count, but this change is offset by a modest increase in our pension expense estimate."
For more ratings news on Eaton Corporation click here and for the rating history of Eaton Corporation click here.
Shares of Eaton Corporation closed at $44.23 yesterday.
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