Nomura Securities Maintains a 'Buy' on United Technologies (UTX); 4Q11 Review

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

Analyst, Shannon O'Callaghan, said, "4Q was not great: Total revenues of $14.966B beat our estimate of $14.677B by 2% and consensus of $15.064B with organic growth of 2% versus our (1%) estimate. 4Q EPS of $1.47 beat our estimate of $1.44 and consensus of $1.46. Guidance was messy. Management maintained the ex-Goodrich (NYSE: GR) guidance range of $5.80-$6.00 with some moving parts. UTC has near-term issues as Fire & Security works on a fix, Carrier faces declines at Transicold and residential, Pratt is pressured by E&D, and Otis faces adverse mix and slower Europe and China. The 2012 guidance is messy, with gains offsetting some FX and pension, and it gets even messier with Goodrich. On the flipside, the stock is trading at 11.5x our 2013 EPS estimate, which has potential upside if Goodrich accretion beats via better execution, lower equity issuance, or both. We expect the focus to begin to shift from the near-term negatives to the valuation on potential 2013 positives."

For an analyst ratings summary and ratings history on United Technologies click here. For more ratings news on United Technologies click here.

Shares of United Technologies closed at $77.65 yesterday.

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