Oppenheimer reported on Tuesday that it is maintaining an “Outperform” rating on the Ohio-based power management company Eaton Corp (ETN), but went on to raise its price target for the stock.
After meeting with Eaton’s management team, analyst Christopher Glynn reported some encouraging prospects for the company. Glynn noted that, “Near-term capital allocation priorities remain reducing debt incurred from the Cooper deal, with no significant acquisitions expected until integration is complete (~2 years remaining). ETN has deployed 50 full time acquisition integration team members to accelerate CBE progress, and thus lacks the resources to adequately pursue additional large deals.” Given the improving outlook, Oppenheimer raised its price target on the company from $73 to $78.
Eaton Corp shares traded higher on Tuesday, gaining 1.35% on the day. The stock is up 30% YTD.