UPDATE: Stifel Nicolaus Initiates Buy, $59 Target on Eaton Corporation

Stifel Nicolaus initiates its coverage on Eaton Corporation

with a Buy rating and a price target of $59 on growth an margin expansion outlook. Stifel Nicolaus says, "Although Eaton operates in cyclical end markets, the company has a good mix of early, mid, and late cycle end markets. Even though growth rates in industrial, data center construction, and certain power quality markets appear to be slowing, growth in industrial construction, aerospace, U.S. heavy truck, and U.S. auto markets is accelerating. We forecast a 6% organic revenue CAGR over the next four years." ETN closed at $49.01 a share yesterday.