MKM Partners Upgrades Eaton Corporation (ETN) to Buy, Better Risk/Reward
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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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MKM Partners upgraded Eaton Corporation (NYSE: ETN) from Neutral to Buy with a price target of $57.00 (from $50.00).
"We believe the risk/reward profile on ETN has turned more positive over the past week following a better understanding of the magnitude, depth and cadence of the macro deceleration," the analyst said. "The concerns driving our August 28 downgrade have been revealed by order/revenue disappointments from major peers in EMR, PH and WCC and we expect ETN’s 3Q12 results to be more confirmation than surprise. We believe in the long-term re-rating story with ETN around the CBE acquisition and view the path as cleared – risk on "old" cyclical ETN appears weighted to the upside near term, while multiple expansion optionality on "new" electrical ETN could offer an attractive payoff in 2013."
MKM lowered 2012E to $4.02 (from $4.10) and 2013E to $4.20 (from $4.50) and initiating a 2014E of $4.60.
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 $45.81 yesterday.
"We believe the risk/reward profile on ETN has turned more positive over the past week following a better understanding of the magnitude, depth and cadence of the macro deceleration," the analyst said. "The concerns driving our August 28 downgrade have been revealed by order/revenue disappointments from major peers in EMR, PH and WCC and we expect ETN’s 3Q12 results to be more confirmation than surprise. We believe in the long-term re-rating story with ETN around the CBE acquisition and view the path as cleared – risk on "old" cyclical ETN appears weighted to the upside near term, while multiple expansion optionality on "new" electrical ETN could offer an attractive payoff in 2013."
MKM lowered 2012E to $4.02 (from $4.10) and 2013E to $4.20 (from $4.50) and initiating a 2014E of $4.60.
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 $45.81 yesterday.
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