UPDATE: Nomura Reiterates Buy Rating, Raises PT on United Technologies Corporation Following Positive 2Q

In a report published Wednesday, Nomura analyst Shannon O'Callaghan reiterated a Buy rating on

, and raised the price target from $103.00 to $120.00. In the report, Nomura noted, “Orders were encouraging in 2Q, with a positive turn in Pratt commercial spares (+15% organically in 2Q vs. -28% in 1Q) and strength in Otis (new equipment orders +22% organically, led by China +35%). Restructuring and share repurchase both increased with restructuring now $450M (still offset by gains) and share repurchase potentially $200-$400M above the original $1B target. Restructuring is expected to deliver $100-$125M of incremental savings in 2014 which could combine with a $200M+ pension tailwind to deliver $0.25-$0.30 of EPS tailwind in 2014 by our estimates. So a number of things are turning positive for UTC with some offsets from continued pressure in Defense and Europe. We raise 13/14 EPS estimates to $6.15 and $6.95. We raise price target to $120 based on 17x our 2014 EPS estimate of $6.95 (also 17x PAP/E) vs. prior 15x assumption on improving orders, tailwinds, and sector multiple.” United Technologies Corporation closed on Tuesday at $105.12.