Citi Reiterates Buy Rating On Cooper Industries

According to Citi, Cooper Industries (NYSE:

) Buy-rated shares spiked 7.5% on April-1 following a Bloomberg story that the company could be an acquisition candidate. Citi reported that this should not be a surprising development. “We have been citing Cooper as a potential takeout candidate ever since it moved its Tools business into the Apex JV with Danaher last year, transforming the portfolio into an electrical products pure-play. As the M&A consolidation wave kicks into a higher gear fueled by healthy balance sheets and a weakening dollar, we would not be surprised to see some of the bigger European industrials like Schneider, ABB, and Siemens scrutinize Cooper. The appeal would include 63% concentration in North American name-brand medium voltage electrical products with leverage to smart grid, energy efficiency, and LED lighting conversion. We reiterate our Buy rating.” Cooper Industries closed on Friday at $69.76.