MKM Partners Raises Price Target on Eaton (ETN)
MKM Partners reported on Monday that it has increased its price target on power management company, Eaton Corporation(ETN).
The firm has maintained its “Buy” rating on ETN, and has raised the company’s price target from $70 to $75. This price target suggests a 17% increase from the stock’s current price of $62.35.
An analyst from the firm commented, “ETN is one of the more notable consensus longs on our list. However, out-year consensus remains too low, in our view, if non-residential continues to recover and NAFTA truck ever rebounds. The case for multiple expansion on the beefed-up electrical portfolio looks solid, given positive early reads on the synergy capture with Cooper. Portfolio optionality remains too ambitious for management to direct investors’ attention, but we believe a Vehicle spin remains a possibility down the road and part of the bull case. With the long-term thesis backed up by solid near-term demand trends, it appears to us that consensus is still on the right side of ETN.”
Eaton shares were down 38 cents, or -0.61% during Monday morning trading. The stock has increase 108% in the past year.
The Bottom Line
Shares of Eaton Corporationp(ETN) have a 2.68% yield, based on Friday’s closing price of $62.57.
Eaton Corporation(ETN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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