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Stock Market & Financial Investment News

News Breaks
June 23, 2014
13:49 EDTMTOR, ETNEaton climbs after settlement seen as less expensive than expected
Shares of industrial products maker Eaton (ETN) are advancing after the company reached a settlement of the antitrust lawsuit filed against it by ZF Meritor, a joint venture between Meritor (MTOR) and Germany's ZF Friedrichshafen. A number of analysts said that the settlement was more favorable to Eaton than they had expected and Meritor's stock is falling in the wake of the news. WHAT'S NEW: Eaton agreed to pay ZF Meritor $500M to settle the latter company's lawsuit, which alleged that Eaton had sought to stifle competition in the truck transmission market by giving rebates to truckers who bought its transmissions. ANALYST REACTION: In a note to investors earlier today, Wells Fargo analyst Andrew Casey wrote that the $500M amount was lower than most had expected, since Eaton may have had to pay $1.4B-$2.4B if the size of the payment had been decided through a trial. Additionally, the settlement removes uncertainty regarding Eaton, Casey stated. He kept an Outperform rating on the shares. Meanwhile, Morgan Stanley analyst Ravi Shanker responded to the news by raising his price target on Meritor to $17 from $15. The company will receive net proceeds of $209M from the settlement and it will use the proceeds to fund mandatory pension contributions for the next three years, Shanker stated. Additionally, the funds will boost Meritor's EPS and enable it to lower its debt, he added. By the second half of 2015, Meritor will use the remaining funds to help defray the cost of a share buyback program, according to the analyst. Although investors may be disappointed by the size of the settlement and the company's decision to initially channel it towards pension contributions, Shanker said he was not surprised by these developments, given the difficulty of predicting the outcome of the case and Meritor's focus on reducing its debt. He continues to like the company's fundamentals and kept an Overweight rating on the shares. PRICE ACTION: In mid-afternoon trading, Eaton climbed 2.2% to $79.28 and Meritor tumbled 12.3% to $12.80.
News For ETN;MTOR From The Last 14 Days
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November 14, 2014
10:00 EDTMTOROn The Fly: Analyst Downgrade Summary
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05:27 EDTMTORMeritor downgraded to Neutral from Buy at Goldman
Goldman Sachs downgraded Meritor to Neutral citing limited upside potential following the outperformance of shares. Goldman upped its price target for the stock to $15 from $14.
November 13, 2014
10:01 EDTMTOROn The Fly: Analyst Downgrade Summary
Today's noteworthy downgrades include: ATK (ATK) downgraded to Hold from Buy at Argus... Adeptus Health (ADPT) downgraded to Hold from Buy at Deutsche Bank... American Woodmark (AMWD) downgraded to Neutral from Buy at Longbow... Avnet (AVT) downgraded to Sell from Neutral at Goldman... Baxano Surgical (BAXS) downgraded to Sell from Buy at Summer Street... Beazer Homes (BZH) downgraded to Neutral from Overweight at JPMorgan... Bristol-Myers (BMY) downgraded to Equal Weight from Overweight at Morgan Stanley... Centene (CNC) downgraded to Market Perform from Outperform at FBR Capital... Cherry Hill Mortgage (CHMI) downgraded to Equal Weight from Overweight at Barclays... Discover (DFS) downgraded to Hold from Buy at Deutsche Bank... Fleetmatics (FLTX) downgraded to Neutral from Buy at BofA/Merrill... Gazprom (OGZPY) downgraded to Neutral from Overweight at JPMorgan... Jabil Circuit (JBL) downgraded to Neutral from Buy at Goldman... LabCorp (LH) downgraded to Hold from Buy at Deutsche Bank... Laredo Petroleum (LPI) downgraded at BMO Capital... Macy's (M) downgraded to Market Perform from Outperform at Wells Fargo... Madison Square Garden (MSG) downgraded to Equal Weight from Overweight at Morgan Stanley... Marvell (MRVL) downgraded to Sell from Neutral at Goldman... Meritor (MTOR) downgraded to Neutral from Overweight at Piper Jaffray... Swedbank (SWDBY) downgraded to Underperform from Sector Perform at RBC Capital... TransGlobe (TGA) downgraded to Sector Perform from Outperform at Scotia Capital... UIL Holdings (UIL) downgraded to Hold from Buy at Argus... Verint Systems (VRNT) downgraded to Fair Value from Buy at CRT Capital... ZAIS Financial (ZFC) downgraded to Equal Weight from Overweight at Barclays.
06:42 EDTMTORMeritor downgraded to Neutral from Overweight at Piper Jaffray
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November 12, 2014
09:21 EDTMTOROn The Fly: Pre-market Movers
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08:09 EDTMTORMeritor sees FY15 adjusted EPS $1.20-$1.30, consensus $1.01
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08:08 EDTMTORMeritor reports Q4 Commercial Truck & Industrial sales $729M
Reports Q4 Aftermarket & Trailer segment sales $240M.
08:08 EDTMTORMeritor reports Q4 adjusted EPS 35c, consensus 14c
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08:05 EDTETNGoldman to hold a conference
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