Citigroup On MI-EE 2011 Outlook

Citigroup has published a research report on Multi-Industry & Electrical Equipment (MI-EE) companies as the industry discloses its 2011 outlook.

In the report, Citigroup writes "Multi- Industry & Electrical Equipment (MI-EE) companies launch their annual blitz of 2011 outlook meetings/calls beginning with ITW on Dec 3, followed by DHR, HON, ITT, GE (both GE Capital and parent), MMM, PNR, and UTX, all providing an updated framework for 2011 expectations. Overall, we continue to be positive on the sector and see attractive upside, especially in mid-cycle leveraged companies. This sector has historically outperformed the S&P by 23 bps in the first two years of an upturn, and we see similar upside in this cycle. Key themes at the meetings should center on pace of recovery in early- + mid-cycle markets, M&A outlook, emerging markets growth, concerns about higher raw materials and pricing, and pension expense (in the wake of HON's switch to mark-to-market accounting). We are Buy-rated on ITW, CBE, TYC, GE, DHR, and WCC."

Companies related to this report include:

3M Company (NYSE: MMM)
Danaher Corporation (NYSE: DHR)
General Electric Company (NYSE: GE)
Honeywell International Inc. (NYSE: HON)
Illinois Tool Works Inc. (NYSE: ITW)
ITT Corporation (NYSE: ITT)
Pentair, Inc. (NYSE: PNR)
United Technologies Corporation (NYSE: UTX)