UPDATE: Credit Suisse Initiates Coverage on Rexnord

According to a research report published this morning, Credit Suisse has initiated Rexnord RXN with a Neutral rating and $23 PT. In the report, Credit Suisse said, "Solid Top-Line Growth Outlook: In our end-market analysis, Rexnord's two businesses (Process & Motion Control and Water Management) fit best within the Industrial Products and Water Management classifications, respectively. We think PMC is poised for solid organic growth, although after two strong years and with global PMIs in the low 50s, major reacceleration is unlikely. In WMC, the U.S. market is substantially off the prior peak, but we do not expect an imminent recovery. We view Rexnord's geographic positioning as a positive (above average U.S. exposure, below average European exposure)." Rexnord closed yesterday at $21.74.