J.P. Morgan Maintains OW Rating On IR

While J.P. Morgan says that there are some interesting developments at Ingersoll-Rand IR, it is maintaining its Overweight thesis.

“IR stock has been dead money since the quarter, lagging on up days, but holding in on down days, probably because of limited exposure to the global growth/commodity story,” J.P. Morgan writes. “More recently, the stock has been volatile around the investor meeting, as many were disappointed in the lack of an upward revision to the long term target.

“As we had stated in our follow up note, while the long term framework is important, given the Street remains below this target, we think the story remains dependent on execution near term as upside in 2011 would make the 2013 target more achievable.”

J.P. Morgan also said that the investor meeting also introduced the prospect of a Hussman divestiture, “an interesting twist in the restructuring story here.”

“In recent days, we have gotten two (unrelated) data points that shed some light on these aspects of the story and in this note we provide our thoughts,” J.P. Morgan added.

Ingersoll-Rand closed Thursday at $45.76.