UPDATE: KeyBanc Upgrades EMCOR Group to Buy on Strong Execution

KeyBanc upgraded EMCOR Group

with an In-line rating and raised the price target from $32.00 to $38.00. KeyBanc noted, "We are upgrading our rating on EMCOR Group, Inc. (EME-NYSE) to BUY from HOLD as we see a sustainable inflection in EME's more cyclical commercial operations (nonres) alongside continued strong execution and cost discipline, and what we consider to be conservatively placed 2013 guidance. We are setting our price target at $45, which assumes a 17x P/E multiple on our 2013 EPS estimate of $2.35 and an add-back of $5 in net cash/per share – we view our multiple assumption as reasonable as it represents a discount to peak multiples of 24-25x seen in 2006." EMCOR Group closed at $37.85 on Tuesday.