Nomura Securities Maintains a 'Neutral' on Ingersoll-Rand (IR); Q4 Review
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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 raised to $38.
Analyst, Shannon O'Callaghan, said, "Total revenues of $3.507B beat our $3.473B estimate by 1% while missing consensus of $3.585B by 2%. 4Q adjusted EPS of $0.76 beat our estimate of $0.64, but segment profit looks more like $0.65 vs. consensus of $0.67. Amid residential and non-residential optimism, Ingersoll’s 4Q results and guidance don’t really feed the fire, in our view. Residential should clearly get much better for IR in 2012, given the product availability and inventory reduction pressures in 2011, but the market is still weak. In non-residential, commercial equipment orders (-6%) look fairly soft even adjusting for the tough 4Q comp (+21%), and the 1Q comp isn’t that easy either (+13%). Security is under pressure, while ThermoKing and Industrial are relative bright spots. All in, the trends are mixed, and there is still execution risk given restructuring, ERP and other changes. We maintain our 2012 EPS estimate at $2.90 but raise price target to $38, based on 13x our 2012 EPS estimate vs. 11x previously."
For an analyst ratings summary and ratings history on Ingersoll-Rand click here. For more ratings news on Ingersoll-Rand click here.
Shares of Ingersoll-Rand closed at $37.99 yesterday.
Analyst, Shannon O'Callaghan, said, "Total revenues of $3.507B beat our $3.473B estimate by 1% while missing consensus of $3.585B by 2%. 4Q adjusted EPS of $0.76 beat our estimate of $0.64, but segment profit looks more like $0.65 vs. consensus of $0.67. Amid residential and non-residential optimism, Ingersoll’s 4Q results and guidance don’t really feed the fire, in our view. Residential should clearly get much better for IR in 2012, given the product availability and inventory reduction pressures in 2011, but the market is still weak. In non-residential, commercial equipment orders (-6%) look fairly soft even adjusting for the tough 4Q comp (+21%), and the 1Q comp isn’t that easy either (+13%). Security is under pressure, while ThermoKing and Industrial are relative bright spots. All in, the trends are mixed, and there is still execution risk given restructuring, ERP and other changes. We maintain our 2012 EPS estimate at $2.90 but raise price target to $38, based on 13x our 2012 EPS estimate vs. 11x previously."
For an analyst ratings summary and ratings history on Ingersoll-Rand click here. For more ratings news on Ingersoll-Rand click here.
Shares of Ingersoll-Rand closed at $37.99 yesterday.
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