Cooper Industries (NYSE:CBE) continues to be positive on the M&A environment, and in their belief they'll be able to generate margin in the 25% to 30% range in 2011.
UBS says, "CBE's stock opened down yesterday morning after the release of in-line 4Q10 results and initial 2011 guidance. The stock recovered (closed +1.4% yesterday) after the conf. call given positive commentary regarding margins and price/cost, end market trends, and the M&A pipeline. Mgmt was incrementally positive on the M&A environment and commented that -$500m in acquired sales is feasible for ’11, potentially including deals larger than CBE has typically pursued. Mgmt also seemed very confident about its target for 25%-30% incremental margins in ’11 despite recent headwinds."
UBS raised full year 2011 EPS estimate from $3.70 to $3.80 and full year 2012 from $4.10 to $4.30.
UBS reiterates a "Buy" rating on Cooper Industries (CBE), which closed Thursday at $61.46, dropping $0.27, or 0.44 percent. UBS has a price target of $68 on Cooper, increasing it from $63.
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