Morgan Keegan Raises PT On Thomas & Betts To $70

Morgan Keegan has published a research report on Thomas & Betts Corporation (NYSE: TNB) after the company reported 1Q earnings results.

In the report, Morgan Keegan writes, "T&B reported Q1:11 EPS of $0.71 adjusted for facility consolidation charges, levels above the $0.69 consensus and management's $0.65-$0.70 guidance; earnings were below our estimate of $0.76. Steel segment revenues and margins fell below our expectations, accounting for approximately half the miss, with the other half tied to electrical segment revenues. Weaker than expected electrical products sales disappointed as price inflation and volumes were light relative to our estimates; with the inclusion of a 5-8% January price increase, only 1% was realized in the 1st quarter. We are modestly reducing our 2011 EPS estimate from $3.50 to $3.45 primarily reflecting shifts in our segment modeling assumptions and changes to our share count assumptions. For 2012 and 2013, we are increasing our EPS outlook from $4.30 to $4.50 and $4.94 to $5.32, respectively, to reflect changes to our economic assumptions (primarily tied to stronger non-residential construction activity)."

Morgan Keegan maintains its Outperform rating and has raised the price target from $62 to $70.

Thomas & Betts Corporation closed Thursday at $59.05.