UPDATE: Credit Suisse Raises PT on Ingersoll-Rand to $43
Credit Suisse maintains its Outperform rating on Ingersoll-Rand (NYSE: IR) and raises its price target by $2 to $43 on signs of improvement in execution.
Credit Suisse says, "Sales guidance looks suitably cautious IR is guiding for 0-3% organic growth in 2012, following 7% in 2011. We estimate organic sales growth of 4% in 2012, which assumes no recovery in US residential demand, and a sharp deceleration in Industrial Tech. For Climate, we forecast growth of 6%, with high-single-digit growth in Asia offset by no growth in Europe (we show in the full report details of Daikin's guidance cut earlier yesterday partly due to Europe) and low-single-digit growth in the US. Construction sales are still below prior peaks, and evidence from our Q4 Temperature Check suggests the tide is slowing turning in IR's favor, particularly in US Residential."
IR closed at $37.99 a share yesterday.
