Nomura Securities maintains a 'Buy' on United Technologies (UTX); Updated Thoughts on GR Acquisition

Nomura Securities maintains a 'Buy' on United Technologies (NYSE: UTX) price target of $88.00.

Nomura analyst, Shannon O’Callaghan, says, "Updated GR thoughts and accretion estimates: A lot has to be finalized on timing and precise amounts of various items, but we are now estimating the Goodrich (NYSE: GR) acquisition to be $0.20 dilutive in 2012, $0.25 accretive in 2013, and $0.60 accretive in 2014. We think UTX will likely call out the 2012 GR impact when it issues guidance. We are not yet including the GR deal in our estimates. The risk profile is a little higher now given the added leverage and the risk that the returns on the GR deal look tougher if the cycle goes against them. Still, at 12x our below-consensus 2012 EPS estimate of $5.85 (excluding 2012 GR dilution) we see the stock as attractively valued."

For more ratings news on United Technologies click here and for the rating history of United Technologies click here.

Shares of United Technologies closed at $71.55 yesterday.

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