Electrical gear makers' share price targets raised

Analyst raises share price targets on electrical equipment makers by an average of 7 percent

• On 11:10 am EDT, Monday September 14, 2009

NEW YORK (AP) -- An analyst Monday raised his share price targets on electrical equipment makers in response to a strengthening economy and improvements in several companies' individual performances.

FBR analyst Deane Dray raised his price targets an average of 7 percent, saying the 59 percent share price rally since March appears sustainable.

"We have more confidence today in the bottoming in several early-cycle industrial end markets and in a 2010-11 recovery scenario," he wrote. "The sector is by no means overextended here."

He cited improving data from the Institute of Supply Management, an uptick in industrial production and encouraging monthly sales numbers from Illinois Tool Works Inc. and W.W. Grainger Inc.

"Multiples now appear to reflect the early recovery stages from a 'typical recession,' fueled by an accommodative Fed, stimulus spending, and a weak dollar," he said.

He raised his price targets on 3M Co., Actuant Corp., Agilent Technologies Inc., Carlisle Cos. Inc., Cooper Industries Ltd., Crane Co., Emerson Electric Co., Honeywell International Inc., Illinois Tool Works Inc., ITT Corp., Roper Industries Inc., SPX Corp., Thomas & Betts Corp., Tyco International Ltd., United Technologies Corp. and Wesco International Inc.

In morning trading, Wesco rose 78 cents, or 2.9 percent, to $27.41 and SPX climbed $1.37, or 2.2 percent, to $64.89.

Buzz up!