UBS Maintains a 'Neutral' on Eaton Corporation (ETN); Takeaways From Meeting with Management
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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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UBS maintains a 'Neutral' on Eaton Corporation (NYSE: ETN) price target raised from $51 to $53.
UBS analyst said, "ETN noted improvement and recent positive economic surprises in NAFTA and Germany, expects a soft landing in China/India/Brazil, and it believes that Europe (ex-Germany) is in recession. Key downside risks include European volatility, Iran and oil prices, China/India, and U.S./European politics. Despite numerous headwinds, ETN expects continued improvement in several areas including U.S. non-res construction and housing, aerospace, and mobile hydraulics. ETN’s back-end loaded ’12 guidance appears consistent with this macro outlook, although it is not without some risk."
"...2015 segment margin target was raised to 16-17% (was 16%, higher at Auto & Hydraulics), but this is partially offset by an incremental 50bp margin headwind from pension. ETN believes it can sustain a <20% tax rate (16%-20% for next five years). While feasible, we believe ETN’s underlying market growth assumptions may be optimistic." (UBS raises FY12 EPS estimate from $4.40 to $4.45 and FY13 from $5.00 to $5.10)
For an analyst ratings summary and ratings history on Eaton Corporation click here. For more ratings news on Eaton Corporation click here.
Shares of Eaton Corporation closed at $51.75 yesterday.
UBS analyst said, "ETN noted improvement and recent positive economic surprises in NAFTA and Germany, expects a soft landing in China/India/Brazil, and it believes that Europe (ex-Germany) is in recession. Key downside risks include European volatility, Iran and oil prices, China/India, and U.S./European politics. Despite numerous headwinds, ETN expects continued improvement in several areas including U.S. non-res construction and housing, aerospace, and mobile hydraulics. ETN’s back-end loaded ’12 guidance appears consistent with this macro outlook, although it is not without some risk."
"...2015 segment margin target was raised to 16-17% (was 16%, higher at Auto & Hydraulics), but this is partially offset by an incremental 50bp margin headwind from pension. ETN believes it can sustain a <20% tax rate (16%-20% for next five years). While feasible, we believe ETN’s underlying market growth assumptions may be optimistic." (UBS raises FY12 EPS estimate from $4.40 to $4.45 and FY13 from $5.00 to $5.10)
For an analyst ratings summary and ratings history on Eaton Corporation click here. For more ratings news on Eaton Corporation click here.
Shares of Eaton Corporation closed at $51.75 yesterday.
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