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Stock Market & Financial Investment News

News Breaks
June 23, 2014
13:49 EDTETN, MTOREaton 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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May 22, 2015
09:58 EDTMTOROn The Fly: Analyst Initiation Summary
Today's noteworthy initiations include: Allison Transmission (ALSN) initiated with a Buy at Stifel... Avago (AVGO) initiated with a Buy at Mizuho... Blackstone (BX) initiated with a Positive at Susquehanna... Cellectis (CLLS) initiated with an Outperform at Oppenheimer... Cypress Semiconductor (CY) initiated with a Buy at Mizuho... Esperion (ESPR) initiated with a Sell at Chardan... H&R Block (HRB) initiated with an Overweight at Piper Jaffray... Horizon Pharma (HZNP) initiated with an Outperform at Leerink... M/A-COM (MTSI) initiated with a Buy at Goldman... Meritor (MTOR) initiated with a Hold at Stifel... Micron (MU) initiated with a Buy at Mizuho... Monster Worldwide (MWW) initiated with a Neutral at Piper Jaffray... NXP Semiconductors (NXPI) initiated with a Buy at Mizuho... National Storage (NSA) initiated with a Sector Weight at KeyBanc... ON Semiconductor (ON) initiated with a Buy at Mizuho... Qorvo (QRVO) initiated with a Buy at Goldman... SanDisk (SNDK) initiated with a Neutral at Mizuho... Sharps Compliance (SMED) initiated with a Buy at Stifel... Skyworks (SWKS) initiated with a Buy at Mizuho... StemCells (STEM) initiated with a Buy at Cantor... Synaptics (SYNA) initiated with a Buy at Mizuho... Synergy Pharmaceuticals (SGYP) initiated with a Buy at Canaccord... Texas Instruments (TXN) initiated with a Neutral at Mizuho... TriNet (TNET) initiated with a Neutral at Piper Jaffray... Vascular Biogenics (VBLT) initiated with a Buy at Roth Capital... Verifone (PAY) initiated with an Outperform at Imperial Capital... uniQure (QURE) initiated with an Outperform at Oppenheimer.
06:06 EDTMTORMeritor initiated with a Hold at Stifel
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May 18, 2015
07:19 EDTETNElectric Products Group to hold a conference
EPG 2015 is being held in Longboat Key, Florida on May 18-20 with webcasted company presentations to begin on May 18 at 7:30 am; not all company presentations may be webcasted. Webcast Link

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