Stifel Maintains Buy on Eaton Corporation, Raises PT to $90.00 from $83.00

In a report published Tuesday, Stifel analyst Nathan Jones maintained a Buy rating on Eaton Corporation (NYSE: ETN), raising its price target from 83.00 to $90.00. According to the report, the target price rise is based on 12.5x 2014E EBITDA or 15x 2015E EPS.“As we enter 2014 we see the potential for Eaton to beat current estimates through one or more of better than expected U.S. non-residential construction, global industrial production, increased Cooper synergies, NAFTA class 8 truck sales, and aerospace demand growth,” the report noted. “We also believe that ETN shares are under-valued relative to peers given its projected above average earnings growth over the next 2 years. Consequently we are raising our target price on ETN shares to $90. Eaton ranks as our top large cap investment recommendation for 2014.”Some highlights from the report included:-”Improving global PMI improvement, particularly in the U.S., over the last few months driving increased industrial production which benefits Eaton's hydraulic and electrical businesses.”-”Rebound in U.S. nonresidential construction after a flattish 2013. We see potential for mid-single digit or better growth in 2014 with continued strength on the private side and smaller declines on the public side.”ETN closed Friday at $78.03 with shares trading up at 1.55 percent.