Deutsche Bank Initiates Cooper Industries With Buy Rating (CBE)
Deutsche Bank is initiating coverage on shares of Cooper Industries plc (NYSE: CBE) with a $60 price target and Buy rating.
In the research report Deutsche Bank says, "Cooper is now a pure-play electrical equipment company, which we view in a favorable light since we see it benefiting from several secular growth trends viz. LED, smart grid and energy efficiency. In addition, we believe productivity initiatives can cause margins to expand beyond prior peak levels over the next cycle - We view 100% exposure to Electrical markets in a favorable light. Following the injection of its Tools business into a JV with Danaher (Buy, $37.20), Cooper now has 100% exposure to electrical equipment markets. We view this favorably, as demand for electrical equipment should benefit from several important secular trends, including the introduction of mass-market, electric-powered vehicles, the replacement of less-efficient electrical/lighting installations and rising "smart grid" investments in utilities' T&D networks. Cooper, as a major provider of LED fixtures and smart grid equipment, is well placed to deliver above-trend organic growth over the coming cycle. We conservatively estimate 5% CAGR through 2015E."
Shares of Cooper Industries plc are up 74 cents today to $43.37.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.