Nomura Securities Maintains a 'Neutral' on Cooper Industries (CBE); Q4 Review

Nomura Securities maintains a 'Neutral' on Cooper Industries (NYSE: CBE) price target raised to $61.00.

Analyst, Shannon O'Callaghan, said, "Revenues beat us by 4% (4% ESS, 3% EPG), but segment operating profit was in line as margins missed us in both segments. The $0.04 beat vs. our estimate on EPS was driven by lower corporate expense, higher Tools JV income, and lower interest expense, partially offset by taxes and a write-down. Despite good end markets driving core growth and a solid balance sheet potentially providing some M&A lift, we continue to view incremental margins at 20%+ as the key hurdle facing CBE in 2012. Following 7% incrementals (13% ex acquisitions/restructuring) in 4Q11, we think CBE needs to begin to consistently hit 20%+. We raise 2012E EPS to $4.35, 2013E EPS to $4.80 and our price target."

For an analyst ratings summary and ratings history on Cooper Industries click here. For more ratings news on Cooper Industries click here.

Shares of Cooper Industries closed at $60.16 yesterday.

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