Sterne Agee Assumes Coverage of United Technologies

A report from Sterne Agee assumes coverage of United Technologies (NYSE: UTX) and maintains Buy rating.

The report states, “The pending Goodrich acquisition provides UTX with a very complementary business that horizontally expands its product lines and adds the opportunity for significant growth given Goodrich's commercial aerospace content and stable defense mix. While the deal dilutes EPS by as much as $0.30-$0.40 in 2012, we expect UTX to greatly benefit from the earnings ramp tied to the commercial aerospace cycle over the next several years.”

UTX closed yesterday at $71.04.