Goldman Sachs Suggests Buying Calls on Eaton

Goldman Sachs is out with a research note this morning, where it suggests that traders buy calls on Eaton

ahead of the company's analyst day (February 24). Goldman Sachs Multi Industry analyst Terry Darling rates ETN shares CL-Buy. The analysts think that the options market often underprices the potential for upside volatility on analyst days, and recommend that investors position with calls. Terry Darling expects management to profile the company's longer term growth opportunities, and notes better visibility to 2012 growth, as suggested by stronger recent data points out of auto, North America truck, and machinery markets. The analysts suggest buying the March $55 call for $0.25. Eaton Corporation is a diversified power management company. It is engaged in the manufacturing of electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use, and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety.