UPDATE: KeyBanc Capital Markets Downgrades Cooper Industries to Hold

KeyBanc Capital Markets has published a research report on Cooper Industries (NYSE: CBE) and has downgraded the company from Buy to Hold after the company was acquired by Eaton (NYSE: ETN) for $11.8 billion.

In the report, KeyBanc Capital Markets writes, "Cooper Industries plc (CBE-NYSE) announced that it has agreed to be acquired by Eaton Corporation (ETN-NYSE) for $11.8 billion in cash and stock, or $72.00/share and a 29% premium to CBE's closing price of $55.84 on Friday, May 18. In light of today's news, we are downgrading our rating on CBE from BUY to HOLD. We believe ETN's purchase price is fair (11.4x and 16.6x CY12 EV/EBITDA and EPS, respectively), but are not completely ruling out a higher potential bidder (5-10% chance in our view). Within our coverage universe, we now believe that HOLD rated Acuity (AYI-NYSE) is the most likely take-out target."

KeyBanc Capital Markets has removed its $70 price target on Cooper Industries, which is currently trading up $0.26 from yesterday's $69.88 closing price.

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