9:02 am Baker Hughes upgraded to Sector Outperform at Howard Weil
Howard Weil upgrades BHI to Sector Outperform from Sector Perform. Firm must acknowledge the relative positive of BHI's concentration in benign operating areas along with a story that frankly feels less noisy than its peers. Additionally, firm senses that mgmt is improving its execution, particularly in NA. The pullback firm witnessed in the name over the past couple of months gives it an opportunity to be more constructive with the stock at this level.
9:02 am Eaton downgraded to Hold at Stifel; removed from Stifel Income Opportunity list
Stifel downgrades ETN to Hold from Buy; they view Eaton as a substantially improved multi-industrial conglomerate with a more balanced portfolio of businesses (centered around power management) and a strong, well-reasoned investment in Electrical Products through the acquisition of Cooper Industries. That said, near term concerns (pricing pressures at Electrical Systems and Service, 2015 margin target traction, continued high expectations for Cooper integration) are center stage while any potential positive portfolio catalysts are a while off (No large deals expected for 2 years, Auto/Truck spin-off off the table for five years, CEO transition next 2 years).
9:01 am General Electric initiated with a Buy at Stifel; tgt $30
Stifel initiates GE with a Buy and price target of $30; they believe the recent portfolio moves (Synchrony Subsidiary IPO, Alstom Deal) sets the company in motion to a favorable industrial/capital mix of earnings of 70%/30% by the end of 2015
9:00 am Lehigh Gas Partners target raised to $42 at Oppenheimer
Oppenheimer raises their LGP tgt to $42 from $35 after meeting with LGP mgmt. They believe the equity will continue to appreciate as the market digests LGP's growth prospects and trading liquidity improves. The CST transaction has the potential to transform LGP due to dropdown growth. CST's IDR ownership means it has a strong incentive to increase LGP distribution per unit. As a result, they are revising 2015 distribution growth estimate to 10% from 7% and believe there is more to come in 2016. In addition, this week's equity issuance has reduced leverage to a comfortable level, clearing the way for additional purchase
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