In a report published Wednesday, Citigroup reiterated its Neutral rating on United Technologies Corporation (NYSE: UTX), and raised its price target from $78.00 to $85.00.

Citigroup noted, “We are increasing our target price from $78 to $85 to reflect our shift in our sector valuation. We continue to assume the large-cap MI-EE group should trade for 14.0x EPS, but are now applying this to our 2013 EPS estimates instead of the blend of 2012/2013 that we used previously. Our UTX target continues to assume the shares trade for a 5% discount to the target group multiple, at the midpoint of its (15%) to 5% historical relative range.” United Technologies Corporation closed on Tuesday at $78.35.