Goldman Moves Up Target On Eaton (ETN)

Goldman Sachs moved its price target on Eaton Corporation ETN to $103 from $87, but kept its Neutral rating after the company reported earnings yesterday. In a note to its investors, Goldman writes, "We maintain our Neutral rating, though momentum remains very strong — with still more upside than downside to our new estimates given continued signs of a multi-year upturn in ETN's highest operating leverage business, Truck. ETN is likely to grow faster than the group average in 2012 given leverage to Truck and a likely turn in non-res construction in developed markets in 2H2012. Balance sheet optionality is improving, but remains below peers at 1% of market cap vs. +8% for the Multi-industry group." Share of ETN gained $3.41 yesterday to close at $86.82, a gain of 4.1%.