Pentair (PNR +2.1%) and Roper Technologies (ROP +0.9%) are upgraded to Overweight from Neutral at J.P. Morgan, which believes the stocks have not received as much as credit as other electrical equipment and multi-industry stocks for anticipated Trump-related benefits.
On PNR, given low expectations set in October and less stock appreciation due to an already low tax rate, the firm sees potential for relative upside to organic growth in a better economy and less downside in a sluggish/steady-state economy, all at an attractive discount.
JPM downgrades TriMas (TRS +0.7%) to Neutral from Overweight, citing valuation following the stock's outperformance over the last three months; the firm also reiterates Honeywell (HON +0.5%), Ingersoll-Rand (IR +1%) and Danaher (DHR +0.3%) at Overweight, and Rockwell Automation (ROK +0.8%) at Underweight while naming General Electric (GE -0.2%) a "top avoid," expecting core operating performance to track below plan driven by weak fundamentals.
TriMas (TRS -12%) plunges to 52-week lows after the stock suffers from at least three analyst downgrades following weaker than expected Q2 results and downside FY 2015 EPS guidance of $1.15-$1.25 vs. $1.43 analyst consensus estimate.
Roth Capital downgrades TRS to Neutral from Buy with a $20 price target, down from $28, as headwinds such as lower oil and gas pricing, continued forex challenges and channel inventory destocking subside and margin improvement initiatives take effect.
Global Hunter cuts shares to Accumulate from Speculative Buy with a $22 price target, cut from $30, as the company's self-help initiatives are taking longer than expected due to weak energy markets.
TRS also is downgraded to Neutral from Overweight at J.P. Morgan.
Trimas (NASDAQ:TRS) -4.2% premarket after issuing downside guidance for FY 2014, lowering EPS outlook to $1.85-1.95 from prior $2.15-$2.25 vs. $2.17 analyst consensus estimate and sees revenues +6%-7% to $1.47B-1.49B vs. $1.5B consensus.
TRS also agrees to acquire Allfast Fastening Systems for ~$360M; Allfast manufactures solid and blind rivets, blind bolts, temporary fasteners and installation tools for the aerospace industry.