Barclays on U.S. Multi-Industry: Initiating Coverage: Cash Will Drive Outperformance - Scale in to Year-End
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Price: $74.50 --0%
Rating Summary:
3 Buy, 14 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
3 Buy, 14 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Barclays on U.S. Multi-Industry: Initiating Coverage: Cash Will Drive Outperformance - Scale in to Year-End
Barclays analyst, Scott R. Davis, said, "Classic value trap? We don't think so. We acknowledge that 2012 numbers are still too high and the cycle has clearly taken a pause. However, our own leading indicators are perking up and the forward look is better than it's been in several months. Classic buy signals are flashing. We've crossed key FCF yield thresholds that correlate with outperformance and with ~10% of market cap in cash, optionality is high. The market has shown remarkable efficiency in pre-discounting growth risks, bringing risk/return back to a highly favorable tilt. As a result, we initiate our coverage of the sector with a Positive rating."
"What stocks do we like? Out of the 23 names in our initiation of coverage universe, and consistent with our themes, we highlight 13 Overweight recommendations. They include later cycle construction and utility exposed names like Cooper (NYSE: CBE), Thomas & Betts (NYSE: TNB), Hubbell (NYSE: HUB.B), WESCO (NYSE: WCC). Higher beta capex exposed names like SPX (NYSE: SPW), Rockwell Automation (NYSE: ROK) appeal to us. Share gain stories like Sensata Technologies (NYSE: ST), WW Grainger (NYSE: GWW), Mission West Properties (NYSE: MSM) make the list. Roper (NYSE: ROP), Danaher (NYSE: DHR) are our two most proven cash reinvestment ideas. Honeywell (NYSE: HON) is still one of our favorite turnaround stories. GE (NYSE: GE) makes it on the list with a 4% dividend yield and a potentially strong powergen cycle ahead of us."
Barclays analyst, Scott R. Davis, said, "Classic value trap? We don't think so. We acknowledge that 2012 numbers are still too high and the cycle has clearly taken a pause. However, our own leading indicators are perking up and the forward look is better than it's been in several months. Classic buy signals are flashing. We've crossed key FCF yield thresholds that correlate with outperformance and with ~10% of market cap in cash, optionality is high. The market has shown remarkable efficiency in pre-discounting growth risks, bringing risk/return back to a highly favorable tilt. As a result, we initiate our coverage of the sector with a Positive rating."
"What stocks do we like? Out of the 23 names in our initiation of coverage universe, and consistent with our themes, we highlight 13 Overweight recommendations. They include later cycle construction and utility exposed names like Cooper (NYSE: CBE), Thomas & Betts (NYSE: TNB), Hubbell (NYSE: HUB.B), WESCO (NYSE: WCC). Higher beta capex exposed names like SPX (NYSE: SPW), Rockwell Automation (NYSE: ROK) appeal to us. Share gain stories like Sensata Technologies (NYSE: ST), WW Grainger (NYSE: GWW), Mission West Properties (NYSE: MSM) make the list. Roper (NYSE: ROP), Danaher (NYSE: DHR) are our two most proven cash reinvestment ideas. Honeywell (NYSE: HON) is still one of our favorite turnaround stories. GE (NYSE: GE) makes it on the list with a 4% dividend yield and a potentially strong powergen cycle ahead of us."
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