Friday, KeyBanc Capital initiated coverage of Cooper Industries plc (CBE) stock with a Hold rating. The brokerage established its 2009 EPS estimate of $2.43, and its 2010 estimate of $2.84.
Analyst Anthony Kure believes CBE, over the long term, would benefit from the combination of its efficient and effective operating model, which yields strong free cash flow in excess of net income, leadership position in many of its industrial, utility and construction markets, and secular market tailwinds.
The analyst believes change in focus of its mix of business provides CBE a solid growth platform on which the company can maintain global GDP-like growth through a combination of new product introductions and complementary acquisitions. In addition, the analyst believes CBE is wisely focusing on four main secular growth drivers, which should provide a sustained growth tailwind for several years.
Overall, the analyst believes CBE's strong management team, effective execution, focus on continuous cost reductions and market leadership will likely provide a solid foundation for long-term earnings growth. However, in the analyst's view, these benefits will likely manifest in a steady and measured improvement in EPS, which he thinks is already captured at the current share price.
While the analyst does expect CBE to benefit from modest growth in the majority of its higher margin end markets, industrial, utility, in 2010, and headwinds associated with the company's commercial construction exposure are likely over-emphasized, he thinks his above consensus estimate for 2010 fairly captures what he thinks will be a very solid execution performance in a modestly recovering economic environment.
Currently, CBE is down $0.24 or 0.56% and trading at $42.69.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.