UPDATE: Oppenheimer Raises Target to $75 on Cooper Industries

Oppenheimer increases its target price from $70 to $75 on Outperform-rated Cooper Industries CBE on improved margin outlook. Oppenheimer says, "While investment in global growth initiatives, coupled with some temporary operating issues around a production consolidation and some procurement & delivery issues, negatively impacted 2H11 margins, we believe that growth investments are already supporting top-line results and operating leverage is well poised to recover to about 25% incremental margins. Noting the company-specific sequential drivers and improved leading nonresidential data, we anticipate CBE has further runway on multiple expansion to track more in line with some mid-cap electrical equipment peers, with initial guidance looking increasingly in a high comfort zone." CBE closed at $64.06 a share on Monday.