Oppenheimer Maintains Outperform on Eaton (ETN)

Oppenheimer is out with its report today on Eaton (NYSE: ETN), maintaining Outperform.

In a note to clients, Oppenheimer writes, "Following ETN shares' underperformance vs. the market and other industrials of late, shares are attractive at 13.2x our '11E EPS and 11.3x our '12E EPS, the cheapest in our coverage (over 20% discount to average). As a large, liquid and global multi-industrial, with broader long-cycle exposure than in past cycles (Electrical and Aero acquisitions, global penetration), ETN's organic growth potential is materially undervalued, we believe. Margin execution has been solid over the past 18 months, and we believe retains material runway on the heels of substantial restructuring and acquisition integrations/consolidation during the downturn."

Shares of ETN closed Tuesday at $52.02.