KeyBanc Downgrades Cooper Industries (CBE) to Hold; Acquired By Eaton (ETN) for $72/Share; Look To AYI

KeyBanc downgraded Cooper Industries (NYSE: CBE) from Buy to Hold.

Analyst, Carter B. Shoop, said, "Cooper announced that it has agreed to be acquired by Eaton Corporation (NYSE: ETN) for $11.8 billion in cash and stock, or $72.00/share and a 29% premium to CBE's closing price of $55.84 on Friday, May 18. In light of today's news, we are downgrading our rating on CBE to HOLD. We believe ETN's purchase price is fair (11.4x and 16.6x CY12 EV/EBITDA and EPS, respectively), but are not completely ruling out a higher potential bidder (5-10% chance in our view). Within our coverage universe, we now believe that HOLD rated Acuity (NYSE: AYI) is the most likely take-out 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 $69.88 yesterday.

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