Goldman Sachs Suggests Buying Calls on Eaton (ETN)

Goldman Sachs is out with a trade idea this morning, where its analysts suggest buying calls on Eaton Corp. ETN ahead of the company's analyst day on February 25th. They believe that this presentation will lead to upward estimate revisions. Goldman Sachs Multi-Industry analyst, Terry Darling, rates shares as a Conviction Buy, with 21% upside to his $132.00 12-month price target. The analysts suggest buying the March 2011 $110.00 calls for $3.00. Eaton Corporation is a diversified power management company. The company is engaged in the manufacturing of electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use, and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety.