Meritor settlement with Eaton disappoints, says JPMorgan JPMorgan says the $209M Meritor (MTOR) will receive in its settlement with Eaton (ETN) fell short of its $450M estimate. The firm views the agreement as a disappointment and lowered its price target for shares to $14.50 from $15.50. JPMorgan thinks event-driven shareholders exiting the stock could prove a medium-term positive, however, and it keeps a Neutral rating on Meritor.
Meritor reports Q1 adjusted EPS 33c, consensus 37c Reports Q1 revenue $809M, consensus $845.94M. The decrease in sales was driven by the effect of foreign exchange translation in Europe and Brazil and weak economic conditions in South America.