Oppenheimer Moves To Sidelines On Eston; Rating Cut to Perform

In a research report issued today to investors, Oppenheimer analyst Christopher Glynn downgraded shares of Eaton Corporation (NYSE:ETN) to Perform rating. No price target was provided.

Glynn commented: “We are downgrading shares of ETN to a Perform rating, reflecting that our revised 2015E EPS of $4.85 is about $0.45 below consensus. We naturally have some reservation about downgrading at the bottom of the 12-month trading range, and fully expect that expectations for estimate revisions are partially in the stock at this point, likely lending some valuation support at current levels. However, we anticipate range-bound trading (including potential for near-term bounce off recent weakness) in light of our view that hydraulics and vehicle cycles may be mature, and ESS industry dynamics likely precipitate a revised ESS margin target. Our assumptions pertaining to these matters render too large a gap between us and consensus to currently carry an Outperform.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Christopher Glynn has a total average return of 14.1% and a 71.7% success rate. Glynn has a 5.4% average return when recommending ETN, and is ranked #225 out of 3314 analysts.

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