Bank of America Merrill Lynch Reiterates Buy On Ingersoll-Rand

Bank of America Merrill Lynch is out with a research report on Ingersoll-Rand Co. Ltd. IR and is reiterating its Buy rating and $44 price target on shares. In a note to clients, Bank of America Merrill Lynch writes, "We recently met with IR's senior management team. Although the tone of the meeting was relatively cautious, we think it reflects what we consider to be recent execution missteps and overall market volatility. IR indicated that order trends in the past two months continued to be solid outside of consumer-levered markets (e.g. truck & trailer up ~30% Y/Y in July, capacity constrained on industrial compressors). We lower '12E EPS from $4.02 to $3.52, primarily reflective of more cautious growth assumption for non-res sector. Based on lower earnings, we cut our PO from $52 to $44. We maintain Buy as we think the investor sentiment has turned overly negative with IR stock pricing in an overly pessimistic scenario relative to its industrial comps." Shares of IR gained $1.74 yesterday to close at $29.11.