Sterne Agee Raises Price Target On SPX Corp. (SPW)

Sterne Agee is raising its price target on shares of SPX Corp. SPW to $81 from $79, but is keeping its Neutral rating on shares. In a note to clients, Sterne Agee writes, "At its Annual 2011 Investor Outlook meeting in New York, SPX announced preliminary 2011 EPS guidance of $4.20 - $4.50 vs. SA estimate of $4.70 and consensus of ~ $4.60. While this is about 24% above 2010E guidance of $3.45-$3.60, it was a bit less than most anticipated. The principal shortfall was 1Q11, when SPX is anticipating $0.40-$0.48 vs. SA's prior estimate of $0.89 and consensus of $0.64. Total 1Q11 sales are projected to rise about 6%-8%, well below our prior 22% forecast. For 2011, SPX anticipates revenues to be in the range of $5.2 - $5.4B (vs. SA at $5.5B and consensus at $5.3B), or 5%-10% above 2010E of $4.9B, with org. sales +2%-7% and 3% coming from acquisitions and foreign exchange. SPX noted that increasing worldwide demand for power and energy, as well as food and beverage services, especially in emerging markets, should drive the revenue and earnings growth across businesses accounting for 85% of its portfolio in 2011. SPX expects to release its 4Q10 financial results on Thursday, February 17, 2011." Shares of SPX lost 69 cents yesterday to close at $75.13, a loss of 0.9%.